Equity ResearchHard

Worked example of a segment build: Segment A is $600M growing 10%, Segment B is $400M declining 5%. What is total growth, and why does the mix matter?

Model answer

Segment A goes to $660M, Segment B to $380M, total $1,040M versus $1,000M — company growth of 4.0%. The mix insight: A rises from 60% to about 63.5% of revenue (660/1040), so if the growing segment…

The full, human-reviewed answer is in the bank.

Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.

More from Equity Research

Browse all topics