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Peer Group Data

Updated over a month ago

If no financial forecasts are uploaded, Valutico generates default financial projections based on the following approach:

  1. Revenue Basis

    • The system uses the last annual revenue figure entered in the Valuation Creation screen as the foundation for forecasting.
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  2. Forecast Calculation Priority
    Forecasted financials are determined using the following hierarchy:
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    a) Analyst Estimates (for public company valuations)

    • If available, consensus analyst estimates are applied. (See 10.2.1 Consensus Analyst Estimates.)
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    b) Peer-Based Estimates (for private companies or public companies without forecasts)
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    • If analyst estimates are unavailable, median values of key financial metrics from selected Peers are used:

      • Net Sales growth (historic & forecasted)

      • Operating expenses margin (historic & forecasted)

      • EBITDA margin (historic & forecasted)

      • Depreciation & Amortization (D&A) (historic & forecasted)

      • EBIT margin (historic & forecasted)

      • Net Income margin (historic & forecasted)

      • Capex as % of Sales (historic & forecasted)

      • Days Sales Outstanding (DSO) (historic)

      • Days Sales of Inventory (DSI) (historic)

      • Days Payable Outstanding (DPO) (historic)

      • Cash as % of Net Sales (historic)

      • Debt/EBITDA (historic)
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    c) Interpolation for Missing Periods

    • If analyst estimates are available but do not extend to the Terminal Year, values are interpolated between the last available estimate and the Terminal Year.
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    d) Fallback Approach (if no Analyst Estimates or Peer Medians are available)

    • Sales Growth: The last available growth rate is gradually adjusted toward a default Terminal Year growth rate of 2%.

    • Margins & Ratios: The previous period’s margin or ratio is carried forward.
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  3. Reference Data

    • The Benchmarking tab in Valutico displays the Peer metrics used in the Valutico Estimates.
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Data Source for Analyst Estimates

  • Consensus analyst estimates are sourced from S&P Capital IQ, which provides a standardised, real-time global financial forecasting database.
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  • These estimates incorporate projections, models, and analyses from analysts, brokers, and company-released data.

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