👉 Landing math, or the initial phase of a financial model, involves estimating key parameters and assumptions that will drive the model's predictions. This includes calculating expected cash flows, discount rates, and growth rates based on historical data, market trends, and business forecasts. A critical step is determining the discount rate, often using the Weighted Average Cost of Capital (WACC), to reflect the riskiness of the investment. Additionally, projecting future revenues and expenses, as well as estimating volatility and other uncertainties, are essential for setting realistic expectations. The goal is to create a robust baseline that can be refined with more detailed data and analysis, ensuring the model's predictions are grounded in sound financial principles and realistic assumptions.
