Build stress testing and scenario analysis tools in Excel.
- [Instructor] Now that we have a complete budget,…we need to be able to offer guidance…to the rest of the company on any risks that we face.…To do that, we should look at scenario analysis…or stress testing our budget…with different types of scenarios.…I'm in the 04_06_Begin Excel file.…Now, for a lot of different scenario analysis…that corporate finance functions do,…we sort of have three different options.…We have a base case scenario,…we have a gray sky scenario,…that's really euphemism for something negative…that we expect to happen like, say, a recession,…and then we have a blue sky scenario,…where things go wonderfully for the company.…
And the idea is to sorta understand,…okay, reasonably speaking, if things go badly,…what's kind of the negative downside?…Or if things go really well, what's our upside?…This helps to give executives a range of possible outcomes.…Now, the way we might model this…is by changing the sales impact overtime.…Recall…that in general, when we're looking at the sales impact,…we use the compounded annual growth rate or CAGR.…
- Capital budgeting in Excel
- Using Excel in project selection
- Analyzing capital structure using Excel
- Estimating weighted average cost of capital (WACC)
- Applying Excel to operational budgeting
- Cash flow budgeting
- Stress test tools for budgets
Skill Level Intermediate
Excel 2016: Power Query (Get & Transform)with Oz du Soleil1h 49m Intermediate
Excel: Analyzing and Visualizing Cash Flowswith Curt Frye1h 16m Intermediate
1. Critical Tasks in Corporate Finance
2. Project Selection in Excel
3. WACC and Capital Structure in Excel
4. Operational Budgeting in Excel
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