How to Analyze Historical Data for Forecasting – Part 5


In my previous video posts (Part -1, Part – 2, Part – 3 and Part- 4) in the Forecasting series, I covered importance of historical analysis and how to project financial statements.

I also covered the different variables that we need to forecast based on historical data and the concept of Net Debt level. I also explained with an example how to calculate Earnings Before Interest and Tax (EBIT) and its year-on-year growth in percentage(%) terms.

EBIT is an essential variable for calculating DCF valuation.

In this video, I’ve explained how to forecast purchase of fixed assets and increase in net working capital.

You’ll learn how to take a clue from past data.

Have any queries? Write in ‘Comments’ below.

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  1. Peter -GGG says

    Maybe I’m missing something , but this video doesn’t really tell me anything . It took some forecast figures form another source , copied them on to a key ratios sheet , and then calcuated theme as percentages of EBIT / EBITDA – no forecasting involved?

    What was the purpose of this video ?

    • says

      Hi Peter,

      This video tells you how to analyze historical data for forecasting. That’s precisely the name and the purpose of the article.

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