This is really good, thanks! I was just coming back to this again today and would like to make a suggestion? For us readers it will really help with context if you explain how the growth rates in your forecast are derived. For example, ‘18-22% per year over the next five years’ on cloud - you’ve explained well why you’ve used this but you haven’t explained how it’s derived. E.g., if you’ve taken a 3 yr historical moving average. It’ll really help. Thanks for the hard work!
Hi, thanks for the feedback! I will certainly make this clearer in future articles. The future growth rate is more of a mix of factors - historical performance, where the industry is, product competitiveness, broader industry growth trends etc. When I put all of these together, I then draw a projected earnings growth. It's more of an art than science here but will still make this clearer in the valuation section for future articles.
As a fun exercise, I examined the past 50 Alphabet earnings calls> seriously that is not my idea of fun. !! Great detailed report and financial model too .
I don’t wanna know how much time this took but man this is great. Thanks!
This is really good, thanks! I was just coming back to this again today and would like to make a suggestion? For us readers it will really help with context if you explain how the growth rates in your forecast are derived. For example, ‘18-22% per year over the next five years’ on cloud - you’ve explained well why you’ve used this but you haven’t explained how it’s derived. E.g., if you’ve taken a 3 yr historical moving average. It’ll really help. Thanks for the hard work!
Hi, thanks for the feedback! I will certainly make this clearer in future articles. The future growth rate is more of a mix of factors - historical performance, where the industry is, product competitiveness, broader industry growth trends etc. When I put all of these together, I then draw a projected earnings growth. It's more of an art than science here but will still make this clearer in the valuation section for future articles.
As a fun exercise, I examined the past 50 Alphabet earnings calls> seriously that is not my idea of fun. !! Great detailed report and financial model too .