Top-down vs Bottom-up forecast

CorporateFinanceAcademy.com

There are many different ways to forecast, often you will hear a debate about whether to do a top-down vs. bottom-up forecast. This video focuses on the Annual Operating Plan (AOP) or budgeting process and how you should think about top-down vs. bottom-up. We take you through what is top-down and what is bottom-up, the pros/cons of each, and when you should use each.