If you’ve got Excel open, find the “Data” tab and have a look under “Data Tools”, “What-If Analysis”. Under there you’ll see goal seek. We’ve said that’s a critical piece of Excel functionality that you need in your modelling survival toolkit.
Under “What-If Analysis” you can also find “Data Tables” which we’ll cover in a later lesson. Data tables are pretty cool – they help you sensitise one input against a second input, helping you look at the sensitivity of a key output to two key inputs. Investment bankers seem to love them and we’ll cover data tables with you in a later lesson.
On our financial modelling course training we sometimes get questions about the third thing you see listed under “What-If”: Excel’s scenario manager.
Our judgement is that (against goal seek and data tables) scenario manager will be of limited use to you. But we think this is absolutely the right forum for discovering a bit more about some of the depths of what Excel has to offer us – so we have a quick lesson for you on scenario manager.
Take the course on Excel formulas useful in financial modelling
We think that, by sending you one email a day for a month, in just ten minutes a day, we can check that you’re on totally on top of the critical Excel formulas you need for financial modelling.