Prospective Analysis Guidelines for Forecasting Financial Statements

Ignacio Velez-Pareja and Joseph Tham 8.1 Chapter Introduction and Objectives Having performed an accounting and financial analysis, an analyst has to forecast financial statements into the future. This is a precursor to valuation. Many methods of forecasting like percent sales method are available. In this chapter, we provide a comprehensive overview of prospective analysis. Although parts of the chapter are written from the perspective of a company's manager, they are still valid for an...