Scenario Analysis - How to Build Scenarios in Financial Modeling

Scenario analysis is a process of examining and determining possible events that can take place in the future by considering various feasible results or outcomes. In financial modeling, this process is typically used to estimate changes in the value of a business, especially when there are potentially favorable and unfavorable events that could impact the company.
Click here to learn more about this topic: corporatefinanceinstitute.com/resources/knowledge/modeling/scenario-analysis/

[@kellyqian5333]

this is helpful, thank you!

[@panayiotiskarapis4654]

Omg this was so helpful thank you so much

[@talimruhe2383]

Learning this for my study and would really like to practice with this template, would highly appreciate it if i could download a free version to figure out the formulas used at the 3 statements

[@AhmedAhmed-jq8sn]

I have made a simple model for oil fiscal system. However, when I am trying to do the sensitivity analysis; the NPV baseline values do not change when the Min and Max values of total oilfield production or CAPEX and OPEX change. However, it is responding to other factors such as oil price, discount rate!!! Could you please help me to fix that issue?

[@Bill0102]

I'm incredibly moved by this material. A book that covered these topics was a key driver in my life's transformation. "Mastering Money Mindfulness" by Benjamin Hawk

[@constantine8601]

is there a downloadable file for practice ?

[@vanessapham6198]

excellent course

[@talimruhe2383]

Hi would it be possible for you (if you have the document, to share it with me) want to practice it with it for my study

[@pb25789]

what kind of chart is best to present the impact of these scenarios on, eg. Profit or EBITDA?

[@navneetsharma462]

Sir can u explain me how did u set a switch and how did u set scenario in that switch.

[@CFI_Official]

Hi Navneet, You can find out more about the topic here: corporatefinanceinstitute.com/resources/knowledge/modeling/scenario-analysis/

[@hopewanggg]

Very helpful！

[@monicaalvarez6361]

do you understand it ?

[@primozbenedicto3501]

Interesting

[@benleoni1770]

If I wanted to hire someone like you - what kind of roll/position/expertise would I be looking for? Thank you!

[@CFI_Official]

Hi Ben, ideally somebody with an FMVA cert ;). But to help you out further, people in roles like financial planning and analysis (FP&A) or investment banking.

[@06hwhelpton]

Hi, is it possible to change the names of the scenarios from '1' and '2' to something like 'Best' and 'Worst'?

[@Sye999]

Yes - nest choose with “If”

[@listenandlearn8419]

Can you share the excel workbook please?

[@CFI_Official]

Hi, Thank you for reaching out to us! This is an excerpt from our Scenario & Sensitivity Analysis course, and you can find the course files (along with the template) here: courses.corporatefinanceinstitute.com/courses/sensitivity-analysis-financial-modeling

[@rebeccavictor4665]

Can you give the excel of this

[@tricialo1]

Is there a way to compare scenarios 1 and 2 without hard coding?

[@tricialo1]

Just figured this out. You can use a self-referencing if-statement. In case this helps anyone else :)

[@yinqian1116]

@@tricialo1 Hi Tricialo, what do you mean by self-referencing if-statement. I have the same question but don't think I understand what do you mean.

[@talimruhe2383]

Hi would it be possible for you (if you have the document, to share it with me) want to practice it with it for my study

[@hemanthd1449]

Looking for someone to help us build a model. Let me know if you take up engagements for developing model

[@harshavardhanbuddabathuni]

I can help you with it, if interested please dm me

[@princejha4326]

This thing isn't my cup of cake.