Book Image

Hands-On Financial Modeling with Microsoft Excel 2019

By : Shmuel Oluwa
Book Image

Hands-On Financial Modeling with Microsoft Excel 2019

By: Shmuel Oluwa

Overview of this book

Financial modeling is a core skill required by anyone who wants to build a career in finance. Hands-On Financial Modeling with Microsoft Excel 2019 explores terminologies of financial modeling with the help of Excel. This book will provides you with an overview of the steps you should follow to build an integrated financial model. You will explore the design principles, functions, and techniques of building models in a practical manner. Starting with the key concepts of Excel, such as formulas and functions, you will learn about referencing frameworks and other advanced components for building financial models. Later chapters will help you understand your financial projects, build assumptions, and analyze historical data to develop data-driven models and functional growth drivers. The book takes an intuitive approach to model testing and covers best practices and practical use cases. By the end of this book, you will have examined the data from various use cases, and have the skills you need to build financial models to extract the information required to make informed business decisions.
Table of Contents (15 chapters)
Free Chapter
1
Section 1: Financial Modeling - Overview
4
Section 2: The Use of Excel - Features and Functions for Financial Modeling
7
Section 3: Building an Integrated Financial Model

Utility functions

Utility functions can be used on their own. However, they come into their own when embedded in other, more complex functions. In such cases, they expand the scope and functionality of the enclosing function by providing access to more conditions or variables.

Some examples of utility functions are IF, AND, OR, MAX, MIN, and MATCH. We will now look at a few of them here.

The IF function

This is one of the most widely used functions in Excel. It can be used on its own or as part of another formula. The IF function checks whether a condition is met, then returns one value if it is and another value if it isn't. The syntax contains three arguments:

  • logical_test: The logical test is a statement that returns...