Hi ! What do you think it is the best for a simplified estimation/forecast of the EBIT for the next 5 years:

1) I know the revenues and EBIT, and so the ratio EBIT/Revenues for the past 5 years.

2) Option n1: I compute the mean growth rate of the EBIT on the past 5 years and I take this value as growth rate for estimating the EBIT for the next 5 years

3) Option n2: I compute the mean growth rate of the Revenues and then I apply this growth rate for estimating the Revenues for the next 5 years. For the past 5 years I compute the mean of the EBIT/Revenues ratio and I apply this ratio of the forcast revenues for estimating the EBIT for the next five years

What is the best option 1 or option 2 ?

Waiting the answers

Thanks