Los 43.c Flashcards
(7 cards)
What is the process for valuation
Analyzing business model > Financial statement analysis > Financial Forecasting
What is revenue drivers?
These are things that change revenue of a business
What’s the difference between Top Down and Bottom Up?
Top down = Variable such as Market share or GDP growth serve as drivers of revenue
Bottom up = Revenue is broken into specific drivers such as price and vol, business segments or geography
What is pricing power?
The extent to which a company can determine its selling prices without hurting sales
Which kind of firms can survive being a price taker
A firm that’s a low cost producer - to do so in the long run they will need to maintain it’s cost advantage howver
What’s an issue with computing market size?
Analysts are unsure whether to only include sales of identical products, or should they include similar and substitute products as well?
