
128 The Financial Times Guide to Corporate Valuation
In many cases, the above is the only basis for forecasting. In some cases
you may wish to use a more comprehensive approach. For a fundamen-
tal understanding of Mobitronics as a company and the industry in which
it operates, we will perform an underlying analysis using the model pre-
sented in the previous chapter. This analysis, used in conjunction with
Mobitronics and its competitors’ historical figures, provides the basis when
forecasting the income statements, balance sheets and the other assump-
tions for the DCF model.
Underlying analysis of Mobitronics
There are many ways to go