Valutico

In the absence of uploaded financial forecasts, Valutico will prepare default financial forecasts, which are determined as follows:

The last annual revenue figure that was entered in the <a href="https://docs.google.com/document/d/1ieMphOO96noSNyfdBXhTcI-LeEFPwcZvakOEU0Hzdhs/edit#heading=h.glnh4a3551lu" rel="nofollow noopener noreferrer" target="_blank">Valuation Creation</a> screen is used as the basis for the forecasts.

The forecast financials are then calculated based on the follow order of priority:

1. If analyst estimates (see <a href="https://docs.google.com/document/d/1ieMphOO96noSNyfdBXhTcI-LeEFPwcZvakOEU0Hzdhs/edit#heading=h.b2b2b4v6guk9" rel="nofollow noopener noreferrer" target="_blank">10.2.1 Consensus Analyst Estimates</a>) are available, these are used (only for valuations of public companies)
2. If analyst estimates are not available (e.g. for all private company valuations or public companies without forecasts), the medians of the following metrics of the Peers are used:
   1. Net Sales growth (historic and estimates)
   2. EBITDA margin (historic and estimates)
   3. EBIT margin (historic and estimates)
   4. Net Income margin (historic and estimates)
   5. Capex as % of Sales (historic and estimates)
   6. Days Sales Outstanding (historic)
   7. Days Sales of Inventory (historic)
   8. Days Payable Outstanding (historic)<br>
3. For the period between when analyst estimates end and the Terminal Year, the values are interpolated between the last analyst estimate year and the Terminal Year.
4. If no analyst estimates or Peer medians are available, the following applies:
   1. For sales growth %, the last available data point (from the above) is interpolated to the TY sales growth. Essentially the growth rate is gradually decreased to the default TY sales growth of 2%.
   2. For margins or relative figures (e.g. CAPEX, expressed as % of Sales), the previous period’s margin / ratio is used.

1. The last annual revenue figure that was entered in the <a href="https://docs.google.com/document/d/1ieMphOO96noSNyfdBXhTcI-LeEFPwcZvakOEU0Hzdhs/edit#heading=h.glnh4a3551lu" rel="nofollow noopener noreferrer" target="_blank">Valuation Creation</a> screen is used as the basis for the forecasts.
2. The forecast financials are then calculated based on the follow order of priority:
   1. If analyst estimates (see <a href="https://docs.google.com/document/d/1ieMphOO96noSNyfdBXhTcI-LeEFPwcZvakOEU0Hzdhs/edit#heading=h.b2b2b4v6guk9" rel="nofollow noopener noreferrer" target="_blank">10.2.1 Consensus Analyst Estimates</a>) are available, these are used (only for valuations of public companies)
   2. If analyst estimates are not available (e.g. for all private company valuations or public companies without forecasts), the medians of the following metrics of the Peers are used:
      1. Net Sales growth (historic and estimates)
      2. EBITDA margin (historic and estimates)
      3. EBIT margin (historic and estimates)
      4. Net Income margin (historic and estimates)
      5. Capex as % of Sales (historic and estimates)
      6. Days Sales Outstanding (historic)
      7. Days Sales of Inventory (historic)
      8. Days Payable Outstanding (historic)<br>
   3. For the period between when analyst estimates end and the Terminal Year, the values are interpolated between the last analyst estimate year and the Terminal Year.
   4. If no analyst estimates or Peer medians are available, the following applies:
      1. For sales growth %, the last available data point (from the above) is interpolated to the TY sales growth. Essentially the growth rate is gradually decreased to the default TY sales growth of 2%.
      2. For margins or relative figures (e.g. CAPEX, expressed as % of Sales), the previous period’s margin / ratio is used.

For reference, the Benchmarking tab shows the Peer metrics that are used in the Valutico Estimates scenario.

The consensus analyst estimates are provided by S&amp;P CapitalIQ. From the S&amp;P Capital IQ Estimates documentation:

<i>Estimates data is a transparent, high-quality, standardized database of global, real-time financial forecasting measures [...] for public companies worldwide, and estimates based on the projections, models, analysis, and research of analysts, brokers, and the companies themselves. Estimates are sourced from research reports, research contributors and news releases.</i>