Calculator · Cash-flow forecast

Projection benchmark check

Test a revenue and operating-margin forecast against industry growth, margins, working capital, capital expenditure, sales-to-capital and return on capital before it goes into a DCF.

What the projection check tests

A forecast that is far from what comparable listed companies achieve needs to be explained. The check compares your revenue growth, operating margin, working capital, net capital expenditure, sales-to-capital ratio and implied return on capital with Damodaran's industry statistics for the chosen region, and shows the gap in percentage points or percent for each year.

It also flags a funding gap when the cumulative cash deficit is larger than the cash available. The check does not tell you the forecast is right; it shows where it needs support (IVS 103 para A20.13).

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