Revenue growth in a financial model can be forecasted several different ways: (1) using a year over year growth rate, (2) using regression analysis, (3) and using a first principles approach of dissecting all individual drivers of revenue and forecasting each of those items. The most appropriate method will depend on the level of detail required for the financial model and use-case. If time is available, a first principles approach is the best method of forecasting revenue growth.
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