Sensitivity Analysis for Financial Modeling

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8 жыл бұрын

Sensitivity Analysis for Financial Modeling Course | Corporate Finance Institute
Enroll in the full course to earn a certificate and advance your career: courses.corpora...
This advanced financial modeling course will take a deep dive into sensitivity analysis with focus on practical applications for professionals working in investment banking, equity research, financial planning & analysis (FP&A), and finance functions.
Course agenda includes:
Introduction
Why perform sensitivity analysis?
Model integration - Direct and Indirect methods
Analyzing results
Gravity sort table
Tornado charts
Presenting results
By the end of this course, you will have a thorough grasp of how to build a robust sensitivity analysis system into your financial model. Form and function are both critical to ensure you can handle quick changes and information requests when you're working on a live transaction.

Пікірлер: 88

@CFI_Official 8 жыл бұрын

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

@manvindersingh1177 7 жыл бұрын

Please send me mining financial model and senstivity analysis vs scenario analysis on my mail id ... manvinders449@gmail.com

@artagbatbatbayar3428 6 жыл бұрын

please send me this financial model artagbat.b@qmc.mn

@cwmasta1 7 жыл бұрын

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 7 жыл бұрын

Thanks! Glad it was helpful for you

@umeshthakur5936 2 жыл бұрын

@@CFI_Official lo

@otgondugee1403 4 жыл бұрын

Such an amazing presentation!! Many thanks!

@anaraghayev4491 7 жыл бұрын

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

@CFI_Official 6 жыл бұрын

Happy to help!

@muhammadumairaltaf7482 6 жыл бұрын

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

@StorySpinner771 2 жыл бұрын

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 2 жыл бұрын

Very good question. I was wondering this too.

@cn0412 7 жыл бұрын

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

@safeershahid9150 3 ай бұрын

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.

@maliacharman9423 4 жыл бұрын

Sensitivity analysis- Excellent post. Thanks.

@alexlee557 7 жыл бұрын

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 7 жыл бұрын

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

@estebangarzonlerma 7 жыл бұрын

Could not agree more, at some point two years ago I was a sort of good at excel, now I could not save my life if it depended on it

@alexlee557 5 жыл бұрын

Today bought the big bundle, finally!

@gouthamic 3 ай бұрын

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?

@lisamccray6481 2 жыл бұрын

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 KZfaq 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 2 жыл бұрын

DCF stands for : Discounted cash flow

@reggierosario4708 3 жыл бұрын

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

@brunoferreiraqueles4672 3 жыл бұрын

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

@Learnmoneytamil 8 ай бұрын

Thank you so much. It was useful for my interview

@JeissonLancheros 5 жыл бұрын

This was so useful! Thank you so much!

@enioskhoza9910 2 жыл бұрын

Well presented with clarity. Thanks

@augustayartehyarteh4467 4 жыл бұрын

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

@michaelshawnhorne 5 жыл бұрын

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

@mypage9331 2 жыл бұрын

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????

@kadnfildnsflisfilsdn 6 жыл бұрын

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 2 жыл бұрын

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

@SyedAli-ev3ou 3 жыл бұрын

where is the download link for the excel file?

@ugovirilli5834 7 жыл бұрын

Amazing method, tremendously useful

@HEMANCHOPRA 3 жыл бұрын

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

@safeershahid9150 4 ай бұрын

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.

@user-qt8vs5mj7g 7 жыл бұрын

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%?

@pragithprabhakaran6298 4 жыл бұрын

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 Жыл бұрын

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

@MrSupernova111 7 жыл бұрын

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.

@nutrisayuti 4 жыл бұрын

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.

@ugovirilli5834 7 жыл бұрын

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 7 жыл бұрын

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 2 ай бұрын

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

@albertbala3235 2 ай бұрын

where is the file you are working with?

@suainegraham6579 3 жыл бұрын

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

@kppphd 3 жыл бұрын

Stunning! Thank you.

@vinayakgupta283 5 жыл бұрын

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..

@AccountingandQuickbooks 3 жыл бұрын

Nice videos. Thanks posting

@fl3661 5 жыл бұрын

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

@CFI_Official 5 жыл бұрын

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!

@sam-pf5ef 7 жыл бұрын

what if all of your outputs are the same?

@greensal86 5 жыл бұрын

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 5 жыл бұрын

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 5 жыл бұрын

@@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 5 жыл бұрын

@@greensal86 No problem at all.

@EcosystemDesignConsulting 5 жыл бұрын

Great stuff. Thank you.

@Timotolas 5 жыл бұрын

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 5 жыл бұрын

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.

@patricenoume1897 7 жыл бұрын

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

@Apple-Bay 7 жыл бұрын

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

@livinindubai 7 жыл бұрын

Thanks for the video!

@livinindubai 7 жыл бұрын

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)?

@andriyandrushko6585 7 жыл бұрын

Excellent

@CFI_Official 7 жыл бұрын

Thanks!

@steffydomnic6774 3 жыл бұрын

Is there financial aid available

@phwaykoko5233 7 жыл бұрын

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

@mzar62458 3 жыл бұрын

Thanks!

@bharatsinghpanwar6069 5 жыл бұрын

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

@CFI_Official 5 жыл бұрын

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!

@cmelhy 7 жыл бұрын

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 7 жыл бұрын

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

@massenimakadi1055 4 жыл бұрын

Thank you so much

@sherwinelumir5226 3 жыл бұрын

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

@renatabongo7892 6 жыл бұрын

Impressive. Thank you for sharing.

@xiaolingeng5676 5 жыл бұрын

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 5 жыл бұрын

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

@sriramkv980 5 жыл бұрын

❤️

@umavijay4997 5 жыл бұрын

This course which time complect

@CFI_Official 5 жыл бұрын

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

@blabber92 6 жыл бұрын

is this template available?

@CFI_Official 6 жыл бұрын

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!