What-if analysis

Financial Modeling in Excel

Nick Edwards

Analyst at Mynd

What is what-if?

  • What-if analysis evaluates different scenarios to see what might happen
    • Also called scenario analysis
  • Asks the questions "what if..."
    • ...I raise the price?
    • ...I offer a discount?
  • Make more informed business decisions

a glass of fresh lemonade

Financial Modeling in Excel

What-if analysis in financial models

Gif showing the changes to input in a financial model and how it can effect outputs

Financial Modeling in Excel

Types of what-if analysis

Scenario Analysis

  • Analyzes one or more variable changes
  • Specific scenarios
Financial Modeling in Excel

Types of what-if analysis

Image of a dartboard with three darts on it

Scenario Analysis

  • Analyzes one or more variable changes
  • Specific scenarios

Sensitivity Analysis

  • Analyzes a range of inputs
  • More open ended
Financial Modeling in Excel

Sensitivity table

example of a sensitivity table

Financial Modeling in Excel

Sensitivity table

sensivity table with supply values highlighted

Financial Modeling in Excel

Sensitivity table

sensivity table with demand values highlighted

Financial Modeling in Excel

Sensitivity table

sensitvity table with a column outlined

Financial Modeling in Excel

Sensitivity table

sensitvity table with a row outlined

Financial Modeling in Excel

Sensitivity table

sensitivity table with the row and column outlined where supply and demand equal each other

Financial Modeling in Excel

Sensitivity table

sensitivity table with the row and column outlined where supply is less than demand

Financial Modeling in Excel

Let's practice!

Financial Modeling in Excel

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