What’s New: Sensitivity Table for DCF, DDM and RIM

Previously, I use scenario (Good, Base, Bad, Ugly) in DCF, DDM and RIM. With new “kung fu” I learnt recently, I can construct Sensitivity Table by using “What-If Analysis – Data Table” (Excel > Data > What-If Analysis > Data Table).

  1. For DCF, Sensitivity Table produces same results like Scenario Analysis.
  2. For DDM and RIM, Sensitivity Table produces similar and close results to Scenario Analysis.

By using Excel’s “What-If Analysis – Data Table”, I can remove a lot of redundant formulas in my excel, thus reduces maintenance overhead.

The slight drawback is Excel will take slightly higher CPU and memory, but no big deal. For optimization purpose, I have changed “Calculation Options” for the DCF, DDM and RIM worksheet to “Automatic Except Data Table”.

You will see these new changes in my future analysis.

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