If it is not working for u guys its probably because your original Term value is not calculated by a function. If you do this, im pretty sure it will work.
Thanks for this useful video. I am trying to embed efficiency in my calculation to generate this table. But unfortunately it doesn't take into account efficiency factor as its not embed in the formula. Could you help me in a way i can embed efficiency in this analysis?
@@danielbustos3356 Use the geometric gradient formula for your upper left "terminal" value. The uniform "A1" value is the savings percentage multiplied by your fixed salary. "i" is the ROR, "g" is your raises, and "n" is the number of years. All those values are obtained from retirement 1, and the sensitivity analysis only changes the ROR and savings values.
@@danielbustos3356 Almost forgot, the geometric gradient formula returns a present value, so you need to multiply it by the F/P factor to convert it into a future value.
Is terminal value (cell G11) a constant or is there a formula in that cell? I'm interested in doing a sensitivity analysis for two variables in a net present value equation. Is there guidance you could recommend? Thanks.
There is a formula in that cell. FCF/ (WACC - Growth). You should be able to do a sensitivity analysis for two variables using the method in the video. Which two variables were you thinking about?
How do you apply a sensitivity analysis if you invest in staff? I have this example where you invest 300 000 in a staff education and i don't know how to make a sensitivity analyse, because every example i find is related to FCF and WACC and i don't have such data.
I am not winning here my table comes out with all the values as the terminal value. does anyone know why this is the case? how do I fix this? #thankxinadvanceforyourhelp
Definitely answering this too late for you Njabulo, but anyone else encountering this problem should look under Formulas --> Calculation --> Calculation Options --> Automatic. Excel typically has it set to "Automatic Except for Data Tables" which can bring about that issue.
@@gabrielgonzalez9954 Mate youre a legend. I am sitting here for over an hour trying to figure out why i get no output in the table. Your advice did the trick. Thank you very much sir!
Please, i need help. I am working on my master thesis and want to know why researchers do not apply sensitivity analysis in goal programming research work.
Correct me if I'm wrong, but I don't think this is correct. First, at a 0% growth rate, that would indicate extreme risk, so it would make more sense if the discount rate were then 15%, not 8. So, I think you need to flip your growth rates going from 5% down to (at a minimum) 0.5% (no one pays for 0% growth). Also, no one will pay the same for 0% growth at an 8% DR as 4% growth at a riskier 12% DR. Just nonsensical. Top left should indicate most optimistic viewpoint, while bottom right should indicate worst case.
This was really helpful, I've been trying to sort out my company's sensitivity analysis for days and it kept failing...I'm glad this worked out🙏🏽💪🏽
Grad Student in an MSRED program here, working on a project, thank you for putting this simple, yet powerful video together, it helped me a ton!
If it is not working for u guys its probably because your original Term value is not calculated by a function. If you do this, im pretty sure it will work.
I'm 4 years late but in my case, it is calculated by a function and it's still not working
Thank you so much! I am a beginner with excel and had to do a sensitivity analysis at work. You made it really easy:)
Is there any reason I get the same value throughout the whole table?
In your settings go to formulas and set calculation settings to automatic default is usually partial.
This just saved my life. Thank you.
TᕼᗩᑎK YOᑌ! - *this is a cool tutorial. Very nice example btw and it's just 2+ mins.*
Great video, really helped me out in a crunch! Much appreciated.
Isn´t the Terminal Value formula TV= (FCF*(1+g))/(WACC - g ) ???? Why do you have only TV= FCF/(WACC - g) ?
This video was great help, thanks a bunch!! Kindly can you share model for stock price sensitivity analysis.
Did you put formulas on cells WACC and Growth?
Thanks for this useful video. I am trying to embed efficiency in my calculation to generate this table. But unfortunately it doesn't take into account efficiency factor as its not embed in the formula. Could you help me in a way i can embed efficiency in this analysis?
Thank you so much. Straight to the point!
many thanks for your video!!
Shout out to all the CE majors
you understand how to solve for the assignment?
@@danielbustos3356 Use the geometric gradient formula for your upper left "terminal" value. The uniform "A1" value is the savings percentage multiplied by your fixed salary. "i" is the ROR, "g" is your raises, and "n" is the number of years. All those values are obtained from retirement 1, and the sensitivity analysis only changes the ROR and savings values.
@@danielbustos3356 Almost forgot, the geometric gradient formula returns a present value, so you need to multiply it by the F/P factor to convert it into a future value.
Stephen Heffner thanks!!! The value that pops out is 6.879 mill just like retirement 1
Is terminal value (cell G11) a constant or is there a formula in that cell? I'm interested in doing a sensitivity analysis for two variables in a net present value equation. Is there guidance you could recommend? Thanks.
There is a formula in that cell. FCF/ (WACC - Growth). You should be able to do a sensitivity analysis for two variables using the method in the video. Which two variables were you thinking about?
hete88 Yes, I got everything to work, thanks.
How do you apply a sensitivity analysis if you invest in staff? I have this example where you invest 300 000 in a staff education and i don't know how to make a sensitivity analyse, because every example i find is related to FCF and WACC and i don't have such data.
hello, if i am doing a sensitivity analysis between beta and market risk premium, what will be the formula in cell G11? hope you can help me. Thanks!
I am not winning here my table comes out with all the values as the terminal value. does anyone know why this is the case? how do I fix this? #thankxinadvanceforyourhelp
Same here
Definitely answering this too late for you Njabulo, but anyone else encountering this problem should look under Formulas --> Calculation --> Calculation Options --> Automatic.
Excel typically has it set to "Automatic Except for Data Tables" which can bring about that issue.
@@gabrielgonzalez9954 Mate youre a legend. I am sitting here for over an hour trying to figure out why i get no output in the table. Your advice did the trick. Thank you very much sir!
Please, i need help. I am working on my master thesis and want to know why researchers do not apply sensitivity analysis in goal programming research work.
How do you do this in sheets?
Thank you mate!
Really helpful.. thanks
Tack mannen!
Solid
Thank you so much top video.
Thank you so much!!
How about next time, you just turn the lights off to see just how bad the picture quality can be?
Correct me if I'm wrong, but I don't think this is correct. First, at a 0% growth rate, that would indicate extreme risk, so it would make more sense if the discount rate were then 15%, not 8. So, I think you need to flip your growth rates going from 5% down to (at a minimum) 0.5% (no one pays for 0% growth). Also, no one will pay the same for 0% growth at an 8% DR as 4% growth at a riskier 12% DR. Just nonsensical. Top left should indicate most optimistic viewpoint, while bottom right should indicate worst case.
he is just showing how to do a table this is not a real scenario.
This guy fucks - great video
I built a tool that lets you run a sensitivity analysis by simply uploading your Excel file: causal.app/sensitivity
😄
The content is ok, but why does he sound like he's doing it as a punishment?