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Hands-On Financial Modeling with Microsoft Excel 2019

You're reading from  Hands-On Financial Modeling with Microsoft Excel 2019

Product type Book
Published in Jul 2019
Publisher Packt
ISBN-13 9781789534627
Pages 292 pages
Edition 1st Edition
Languages
Author (1):
Shmuel Oluwa Shmuel Oluwa
Profile icon Shmuel Oluwa

Table of Contents (15) Chapters

Preface 1. Section 1: Financial Modeling - Overview
2. Introduction to Financial Modeling and Excel 3. Steps for Building a Financial Model 4. Section 2: The Use of Excel - Features and Functions for Financial Modeling
5. Formulas and Functions - Completing Modeling Tasks with a Single Formula 6. Applying the Referencing Framework in Excel 7. Section 3: Building an Integrated Financial Model
8. Understanding Project and Building Assumptions 9. Asset and Debt Schedules 10. Cash Flow Statement 11. Valuation 12. Ratio Analysis 13. Model Testing for Reasonableness and Accuracy 14. Another Book You May Enjoy

Using direct and indirect methods

There are two methods in sensitivity analysis: the direct and indirect methods. Both methods make use of data tables that can be found under What If in the Forecast group on the Data ribbon in Excel. The following is a screenshot of the location of the Data Table... option:

In order to make use of the data table, you must structure your data in a particular way. The following screenshot shows the layout for a data table:

The cell in the top-left corner of the table layout must be related to the target value share price, whose behavior we wish to observe. That specific position is essential for the data table function to work. However, since it will not be used for anything else, it is shown here in a white font color, making it invisible to the naked eye, so as not to cause any distraction.

The row input values are entered across the top row...

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