Enter the historic earnings data in the first three columns (Historic Y1 through Historic Y3). The default revenue values in Y2 and Y3 come from questions 16 and 15 respectively on the Questionnaire. You can overwrite those values by entering new ones in the input cells.

Historic Earnings Inputs

When you're done, click on the Calculate Now button in the toolbar. BESWeb will update the worksheet.

Review the revenue growth rates for the three projected years. The default rate is an average of the growth rates for Historic Y2 and Historic Y3. If the rates are too high or low, enter the new rates that you want to use for Projected Y4 through Projected Y6.

The last two lines in the Historic and Projected Earnings section calculate Non-Discretionary Expenses. For the projected years, Non-Discretionary Expenses are calculated as a percentage of revenue. The default percentage is an average of the three historic years. Review the percentages for Projected Y4 through Projected Y6, and if necessary overwrite them.

Projected Earnings Inputs

To see the effect of your inputs, click on the Calculate Now button in the toolbar. BESWeb will update the worksheet.

In the Weighting section you enter a percentage weight for each of the historic and projected years. The default weight is the same for all six years: 16.7%, or one-sixth. To change the weights, overwrite the default values.

Weighting Inputs

The Normalized Results section at the bottom of the worksheet displays the results of the normalization calculations. Review these results for plausibility.

Normalized Results