Vistra Corp. VST

In a log-log model, SG&A spending shows an elasticity of about 1.11 on revenue, implying a 1% increase in SG&A is associated with roughly a 1.11% rise in revenue. However, model accuracy is limited: the holdout forecast missed by 13% (predicted $5.2B vs actual $4.6B) and the overall MAPE is 20.9%, signaling meaningful uncertainty in forecasting ROI from SG&A spending. The latest quarterly revenue is 4.584B, while the FY outlook calls for about 23B, up 28.1% year over year, indicating a strong growth trajectory. Investors should weigh the positive revenue responsiveness to SG&A spend against the model's accuracy gaps and the ambitious full-year forecast when evaluating the sustainability and ROI of the company's spending and growth outlook.