Equity analysts typically recast and adjust a company’s reported earnings prior to developing earnings forecast and applying a valuation model to derive a valuation of its shares. Discuss the principles of recasting, adjusting and forecasting reported earnings, illustrating your answer with examples from a company or companies of your choice

Answer rating: 100% (QA)

Businesses may adjust their balance sheet or the profitloss statement as part of the recasting In the balance sheet the account receivables can be modified by removing uncollectible accounts as the ba... View the full answer