Model Update

Workflow

Step 1: Identify What Changed

Determine the update trigger:

• Earnings release: New quarterly actuals to plug in
• Guidance change: Company updated forward outlook
• Estimate revision: Analyst changing assumptions based on new data
• Macro update: Interest rates, FX, commodity prices changed
• Event-driven: M&A, restructuring, new product, management change

Step 2: Plug New Data

After Earnings

Update the model with reported actuals:

Line Item	Prior Estimate	Actual	Delta	Notes
Revenue
Gross Margin
Operating Expenses
EBITDA
EPS
[Key metric 1]
[Key metric 2]

Segment Detail (if applicable):

• Update each segment's revenue and margin
• Note any segment mix shifts

Balance Sheet / Cash Flow Updates:

• Cash and debt balances
• Share count (buybacks, dilution)
• Capex actual vs. estimate
• Working capital changes

Step 3: Revise Forward Estimates

Based on the new data, adjust forward estimates:

	Old FY Est	New FY Est	Change	Old Next FY	New Next FY	Change
Revenue
EBITDA
EPS

Key Assumption Changes:

• What assumptions are you changing and why?
• Revenue growth rate: old → new (reason)
• Margin assumption: old → new (reason)
• Any new items (restructuring charges, one-time gains, etc.)

Step 4: Valuation Impact

Recalculate valuation with updated estimates:

Valuation Method	Prior	Updated	Change
DCF fair value
P/E (NTM EPS × target multiple)
EV/EBITDA (NTM EBITDA × target multiple)
Price Target

Step 5: Summary & Action