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Quick Sheets/BAR/Financial Forecasting, Budgeting & Valuation

BAR — Quick Sheet

Financial Forecasting, Budgeting & Valuation

Read time: ~5 minutes

One-minute revision

  • CM = Sales − VC; Breakeven units = FC ÷ CM per unit; breakeven $ = FC ÷ CM ratio
  • Target profit units = (FC + target profit) ÷ CM per unit
  • Price/rate variance uses actual quantity; quantity/efficiency variance uses standard price
  • Valuation: income (DCF), market (multiples), asset (adjusted net assets)
  • WACC = E/V × Re + D/V × Rd × (1 − t) — tax shield applies only to debt
  • Terminal value = CFn+1 ÷ (WACC − g); dominates DCF value