Revenue model relates to how businesses generate revenue. Specifically, we’ll learn how companies recognize revenue, how to think about revenue drivers and how to forecast revenue into the future. Since cash trickles down from revenue, understanding how a company generates revenue has important implications not only on the quality of the business but also on the amount of cash it’ll be able to generate. We’re now entering the stage of our stock analysis where we solve for the stock’s intrinsic value.
Key Takeaways:
- Revenue recognition
- Revenue streams and drivers
- How to forecast revenue