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How are the Valutico Estimates derived when no forecasts are available?
How are the Valutico Estimates derived when no forecasts are available?

Financial Projections, estimates, calculations, forecasts, no forecasts, peer estimates

Updated over a week ago

Our Valutico Estimates are based on a benchmarking analysis of the peer group. That means that unless you are entering values yourself (shown in blue on the Projections screen) the system will use median sales growth rates, margins, and other inputs (e.g. inventory turnover) of the peer group to fill the missing assumptions (these values are shown in green).
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That way, when you are valuing companies "outside-in" or in situations where you simply do not have forecasts, Valutico supports you in making meaningful assumptions for the missing parameters. The forecasts for the peers themselves are based on consensus estimates, meaning that we have access to forecasts of equity research analysts who analyze these companies.
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When there is no peer data available - for example, many years into the future or if there are no consensus estimates - the system will extrapolate from previous years' financials.

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