Long term sales growth estimate

Research
1

Hello everyone.
Do we have a formula for a long-term revenue growth estimate?
Forward-looking Wall Street revenue growth projections over the next 5 years is what I mean.
Thank you very much in advance.

2

We do not have a precalculated factor that uses the sales estimates for the next 5 years. We have the sales estimates for the current year and following 3 years, so we could use those to construct a factor for the estimated sales growth over the next 4 years.

If you wanted to calculate the growth as the estimate for year 4 vs last year’s sales, then the formula would be 100 * ((ConsEstMean(#SALEY,3) - SalesA) / SalesA)
There will be a lot of NA values since year 4 has a lot of NA values for sales estimates.

If you wanted to use the average of the sales estimates for the next 4 years, then the formula would look like this: 100 * ((LoopAvg(“ConsEstMean(#SALEY,CTR)”,4,0,1,1,1) - SalesA) / SalesA)
You could do it a different way depending how you want to handle NAs. You can paste the code below into the screener using the Text Editor function. This will show you the difference in the 2 options for NA handling.

showvar(@SalesA,SalesA)  //Sales last year
showvar(@s0,ConsEstMean(#SALEY,0))
showvar(@s1,ConsEstMean(#SALEY,1))
showvar(@s2,ConsEstMean(#SALEY,2))
showvar(@s3,ConsEstMean(#SALEY,3))
[OFF] //Need to decide how to handle NAs
showvar(@SalesAvg1,LoopAvg("ConsEstMean(#SALEY,CTR)",4,0,1,1,0))  //Returns NA if it encounters any NA in the loop
showvar(@SalesAvg2,LoopAvg("ConsEstMean(#SALEY,CTR)",4,0,1,1,1))  //break when it encounters an NA and will return the result to that point
showvar(@SalesGrowthPredicted4yr, 100 * ((@SalesAvg2 - SalesA) / SalesA))  //Using the 2nd method above
showvar(@SalesGr%5Y,SalesGr%5Y)  //sales growth last 5 years for comparison
3

Also, LTGrthMean is the average analyst long-term EPS growth estimate, which isn’t what you’re looking for, but might be helpful. You can get all sorts of long-term growth data by using the ConsEst functions with the #LTG parameter. Long-term growth is generally considered the estimate of a company’s earnings growth over the next three to seven years.