Excel Financial Modeling | Sensitivity & Scenario Analysis

Use sensitivity analysis, scenario analysis, and goal seek/solver to evaluate different scenarios and forecast how a business is going to perform. 👉 Excel for Business & Finance Course: https://www.careerprinciples.com/courses/excel-for-business-finance 📝 Download the start file here: https://view.flodesk.com/pages/620fd889d328ec5152cf0a8f 1. Goal Seek / Solver: using goal seek, we can find an input to reach our desired output. For example, how many sales do we need to generate to make a million dollars. Excel Solver is the advanced version of this, where we can choose multiple inputs and set constraints to reach our desired output. 2. Sensitivity Analysis: using a sensitivity analysis table we can evaluate how changing a set of inputs will affect our profitability. The inputs we change are the price range and the quantity sold range. This is one of the functions on the What-If-Analysis section under the data tab of Excel. 3. Scenario Analysis: using a scenario analysis, we can see how different revenue and cost forecast will affect our profitability. For this we create a base, best, and worst case scenario, and use the choose formula to create a dynamic model. LEARN: 📈 The Complete Finance & Valuation Course: https://www.careerprinciples.com/courses/finance-valuation-course 👉 Excel for Business & Finance Course: https://www.careerprinciples.com/courses/excel-for-business-finance 🏦 The Investment Banking Program: https://www.careerprinciples.com/career-track/the-investment-banking-program 🚀 All our courses: https://www.careerprinciples.com/all-courses 📹 My FREE videos with MoneyUnder30: - Index Funds Explained: https://bit.ly/IndexFundsMU30 - How to Invest: https://bit.ly/HowToInvestMU30 - Stock Market Investing: https://bit.ly/MU30Stockmarketinvesting - How Zero Commission Brokers make money: https://bit.ly/CommissionFreeTradeMU30 - 50/30/20 Budgetting Rule: https://bit.ly/503020Method GEAR: 📹 My Favorite Books & Gear: https://kit.co/kenjiexplains ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Chapters: 0:00​ -​ Intro 0:27 - Goal Seek & Solver 6:25​ - Sensitivity Analysis 9:22​ - Scenario Analysis Disclaimer: I may receive a small commission on some of the links provided at no extra cost to you.