Start with an operational identity
A retailer’s sales can be approximated as stores multiplied by sales per store, with explicit treatment of openings and online channels. A marketplace’s revenue may relate to transaction volume multiplied by its take rate, subject to the company’s reporting definitions.
Use only what the evidence supports
Not every company discloses customers, volumes or prices. When the detail is unavailable, segment revenue growth may be more defensible than fabricated unit economics. Document estimates and avoid double-counting the same driver.
Translate growth into investment
Growth can require working capital, infrastructure, hiring or customer acquisition. Model the cost of growth alongside the additional revenue rather than assuming that all incremental sales convert to cash.
A useful review question
If revenue growth changes, which other assumptions should change with it? A coherent operating scenario should connect revenue, margin and reinvestment.