Sensitivity Analysis for Financial Modeling

[@CFI_Official]

Download the Excel file for this course: courses.corporatefinanceinstitute.com/courses/sensitivity-analysis-financial-modeling

[@manvindersingh1177]

Please send me mining financial model and senstivity analysis vs scenario analysis on my mail id ... [e-mail]

[@artagbatbatbayar3428]

please send me this financial model [e-mail]

[@anthonylyall6335]

Can't seem to download it anymore

[@AccountingandQuickbooks]

Nice videos. Thanks posting

[@StorySpinner771]

Thanks for the tutorial, 1 question though, why do you assume that positive impact = negative impact? for e.g. in the model you set the positive impact of a 5% change in revenue growth to 19% because the negative impact of a -5% change is 19% but according to my calculations (42.83/34.85 - 1) = 23% so a 5% change in Revenue growth causes a 23% change in share price not 19% as stipulated in the gravity sort table and tornado chart. Please clarify this

[@redherring4119]

Very good question. I was wondering this too.

[@brunoferreiraqueles4672]

Good morning, congratulations on the course. Would you like this spreadsheet to be available?

[@safeershahid9150]

Hello! its a great tutorial but we are unable to practice it. so please share excel files so we practice along with the tutorial. Thanks.

[@gouthamic]

Is it possible to do this sensitivity analysis to more than 2 inputs, say, 3 or 4 inputs all at the same time, using data tables?

[@cn0412]

Man, I really apreciate this video. Thanks a lot!

[@albertbala3235]

I'm registering to enroll but its denying my debit card

[@lisamccray6481]

I'm not this year new to accounting but I'm still new to accounting. Paste special. CFS. WACC. I'm learning so far from just KZbin videos. Love all of you ❤guys and girls by the way. (How could we not)? So thanks. What does DCF stand for, please. Anybody?

[@maestro2.014]

DCF stands for : Discounted cash flow

[@vinayakgupta283]

As you said you worked as investment banker and consultant in corporate development. why you get into teaching line ..? Your reasons will be valuable for me thanks..

[@SyedAli-ev3ou]

where is the download link for the excel file?

[@otgondugee1403]

Such an amazing presentation!! Many thanks!

[@JeissonLancheros]

This was so useful! Thank you so much!

[@ugovirilli5834]

But, I have a question regarding the sensitivity of growth rate in revenue, which actually affect the EBITDA value as well somehow. How do you overcome that issue ?

[@CFI_Official]

Hi Ugo, this is by design so you can see the impact on the entire model when revenue changes (including the impact on EBITDA)

[@albertbala3235]

where is the file you are working with?

[@michaelshawnhorne]

F4.. Thank you, just thank you...

[@kadnfildnsflisfilsdn]

When you take the inverse value of the positive (column J), aren't you assuming each component is a mirror image of the other? I don't think they all have symmetrical outcomes on either side of 0

[@lucasdefariacassalho3054]

that's right, the change in share value for a +5% change in revenue growth is 22.8%, not the 19% presented in the tornado

[@mypage9331]

Very informative..BUT...is there not a fundamental flaw in the final diagram? You are comparing the effect of +/-5% changes in some inputs to +/-1% changes in other to +/-1x changes in yet another. Should they all not be normalized????

[@safeershahid9150]

It is an excellent to explain complex concepts bundle of thanks. but i cant find the excel sheets please share the excel files so we practice along with the tutorial.

[@bharatsinghpanwar6069]

Please provide vedio for all courses of financial modeling in details.....

[@CFI_Official]

We have a number of courses in finance. You can check out our course catalog and pricing here: courses.corporatefinanceinstitute.com/collections When you click on each course title, you can see the course curriculum, a detailed overview of the topics covered, and our students' feedback. All of our lectures, study materials, and exams are online and can be accessed from anywhere in the world, allowing you to complete the training at your own pace! Hence, there is no specific timeline for any of our courses. You can sign up for the course of your choice by creating a profile online using your email address and start studying whenever you wish!

[@cwmasta1]

Gorgeous model that tells a story in a clean & concise way, I love it. I will definitely be using some of the visualization techniques from this in my FP&A role.

[@CFI_Official]

Thanks! Glad it was helpful for you

[@umeshthakur5936]

@@CFI_Official lo

[@Timotolas]

At minute 22:21, why did you select the negative values as the value to numerator of your division (-5% revenue growth value / (reference value-1))...why you don't select +5% as the numerator?

[@CFI_Official]

The choice of change in assumptions depends on what you're trying to sensitize. If you would like to know which assumption has the biggest impact on the share price when it decreases by -5%, you would use the negative change as the numerator and rank their absolute values. Vice versa, if you would like to see which assumption affects the share price the most when there is a +5% change, you would take the absolute value of the positive changes and rank them.

[@fl3661]

What could be the reason for me getting the same numbers for every combination of change?

[@CFI_Official]

Hi SJ. There are two possible reasons for the data table to not be working: - The independent variables you are trying to test are not properly linked to the model (i.e. none of formulas used in the model is dependent on the variable cells) - You have not enabled automatic calculation in Excel (you may turn it on by going to Formulas > Calculation Options > Automatic) Hope this helps!

[@Learnmoneytamil]

Thank you so much. It was useful for my interview

[@muhammadumairaltaf7482]

The best video with great communication skill.....

[@suainegraham6579]

This video quality is distorted is there another link to the vide

[@MrSupernova111]

I like your Excel file but I wonder if its too complicated for real life application. Looks like the worksheet you are working with is loaded with an insane amount of data analysis.

[@HEMANCHOPRA]

Is there a course which takes you through the complete building of this model please?

[@davidlewis4844]

very poor visual resolution. Blurry and out of focus. Unusable.

[@Renatofsa355]

you are not from the time when we downloaded low-resolution movies in RMVB haha

[@pragithprabhakaran6298]

CFI videos are very informative and well presented. I have seen almost all the videos posted by CFI. My question is for CFI; please answer what extra can I get by enrolling for the course? Thank you

[@Canaan17]

Yes u buy a subscription for 1 year where u can learn everything and get certified if u pass the exam

[@ugovirilli5834]

Amazing method, tremendously useful

[@Apple-Bay]

hi i would like to ask for your help , i meed to created a price list but is a bit complicit as im not usr to excel im planning to buy stuff and they are different grade of the same product example : grade A = 100% Grade B= 85% grade C 65% and so on many thanks

[@sam-pf5ef]

what if all of your outputs are the same?

[@nutrisayuti]

I try to use "what if" function for the model that parameter input and formula in the different sheet. And it's not work. So I do the one way sensitivity analysis manually by change each parameter to min and max one by one.

[@anaraghayev4491]

very effective way of explaining sensitivity analysis for equities. Thanks a lot!

[@CFI_Official]

Happy to help!

[@EcosystemDesignConsulting]

Great stuff. Thank you.

[@enioskhoza9910]

Well presented with clarity. Thanks

[@reggierosario4708]

Excellent ! The presentation was very informative and helpful. Thanks a ton !!

[@sherwinelumir5226]

Very helpful, Can someone give the excel file of that?

[@augustayartehyarteh4467]

I want to know more about corporate finances 1. Nice video.

[@greensal86]

Can you please help... I created my own financial model and I implemented the direct and indirect sensitivity analysis shown in the video. The direct method matches the results with my model. However, the indirect method numbers are not matching. The values at 0% are matching the model. However, the values at different percentages, in my case +/-10%, are not matching. Where do you think I went wrong?

[@CFI_Official]

While it is difficult to assess what the issue is without looking at the excel file, here are some common problems that may be causing the disparity: 1. The 10% growth rate change is being applied to revenue and not to the actual revenue growth rate. i.e it is growing revenue by 10% instead of changing the growth rate of revenue by 10% (i.e change revenue growth to 11%). 2. Check if all other variables are held constant. Sometimes another variable has been changed that is affecting your results. 3. Simple cell reference issues. I would suggest using trace precedents and dependents to audit the model and see if all the formulas are correctly referenced! I hope you manage to resolve your issue soon!

[@greensal86]

@@CFI_Official Thank you very much for the insight. My model was actually adding the +/-10% change in revenue growth percentage instead of +/-10% of the forecasted revenue growth percentage. The numbers makes sense now. Thanks again!

[@CFI_Official]

@@greensal86 No problem at all.

[@steffydomnic6774]

Is there financial aid available

[@cmelhy]

Hi really appreciate the video Thanks. I have a question regarding the financial model. if you have so many data i you have a maximum amount to spent , let say for each person in the database, to make sure that if the person goes aver the amount allocated you ,manually change a number or 2 to make the report look "nice" , how can you set up your model so the expenses wont go over. I was thinking about the " If , CONDITION" in excel. can you help please

[@CFI_Official]

You can use data validation to limit/control the numbers users can input. Go to the data ribbon, data validation, then select under Allow: "whole number" or "decimal" and set the min/max allowed. Check out more in our full Excel course: courses.corporatefinanceinstitute.com/courses/free-excel-crash-course-for-finance

[@livinindubai]

Thanks for the video!

[@livinindubai]

Hello, At 14:48, he changed the revenue formula of 2016. Typically when you perform such analysis, do you always sensitize the first year's projected figures as opposed to last year (2020)?

[@maliacharman9423]

Sensitivity analysis- Excellent post. Thanks.

[@陈雪彬]

I don't understand why the change is always symmetric? Are there some cases which the change on +5% is not opposite of the change on -5%?

[@mzar62458]

Thanks!

[@phwaykoko5233]

how to write "if A and B are in the same row'' in vba programming.

[@umavijay4997]

This course which time complect

[@CFI_Official]

Hi, All of our courses are online and entirely self-paced. Hence, you can start the course by enrolling online at anytime here: courses.corporatefinanceinstitute.com/courses/sensitivity-analysis-financial-modeling

[@xiaolingeng5676]

Hi, Thanks for the wonderful video. Can i know where to download the excel docuemnt which you used for the video? Many thanks

[@CFI_Official]

Hi Xiaolin, Thank you for reaching out to us! You can find the Excel document in the full course here: courses.corporatefinanceinstitute.com/courses/sensitivity-analysis-financial-modeling

[@massenimakadi1055]

Thank you so much

[@alanshibu1482]

GG

[@kppphd]

Stunning! Thank you.

[@alexlee557]

I love your work mate, I will have more free time soon and will buy your big course, looking forward! The problem with Excel is that you forget things you don't use frequently, that's why I am doing this model for the second time

[@CFI_Official]

Thanks! We're glad you're finding the courses helpful

[@alexlee557]

Today bought the big bundle, finally!

[@patricenoume1897]

Hello, I m actually working on a project finance. and I would like to perform a sensitivity analysis on the DSCR and IRR which variables should I take into consideration. From Morocco best regards

[@andriyandrushko6585]

Excellent

[@CFI_Official]

Thanks!

[@sriramkv980]

❤️

[@blabber92]

is this template available?

[@CFI_Official]

Hi, this video is taken from our Scenario & Sensitivity Analysis course, which can be accessed here: courses.corporatefinanceinstitute.com/courses/sensitivity-analysis-financial-modeling The templates are available in the course and downloadable after enrollment!

[@renatabongo7892]

Impressive. Thank you for sharing.