So for year 1, our revenue forecast is just going to be the year 1 initial market size, one million units, times our share, we're going to get 25% of that market. And we know that revenue equals market size, times market share, times price. We're going to start by forecasting the dollar revenues. So as a brief reminder, here are our revenue forecast drivers.
Free cashflow drivers#
So here's our free cash flow formula, and again the goal today is to translate the forecast drivers into dollar forecasts. Dollar free cash flows over the 5 year horizon for our tablet project. Today I want to apply those forecast drivers to actually forecast dollar cash flow.
In particular, they're the assumptions about each of the components going in to our free cash flow formula. Last time we laid out our forecast drivers and those were the assumptions that are necessary to generate our free cash flow forecast. But before doing so let's start with our recap of the last lecture. Today we are going to be talking about forecasting free cash flows. Hey everyone, welcome back to corporate finance. And apply them to the free cash flow formula to forecast free cash flows into the future for the tablet project. Today, I want to apply the forecast drivers we discussed last time in the context of our tablet case.
Last time, we talked about forecast drivers, or the assumptions required to forecast free cash flows into the future.
0 kommentar(er)
