In this workout an analyst has created a market model for energy drinks along with market share forecasts for one of the major players in the industry. We've been asked a forecast FY1 to FY3 revenues using this information.

The market size numbers that we've been given here are sometimes referred to as the total addressable market. Building our revenue forecast from this is a very straightforward calculation. We'll start with FY1 and we simply need to take the market size. and multiply that by market share and that gives us FY1 revenues of just under 22.4 billion dollars. We can then copy this formula to write to calculate forecast revenues for FY2 and FY3 as well. This is really helpful analysis as we can see that revenue growth is not just based on the growing market size. But also because the company's forecast to take a small amount of market share from its competitors during the forecast period