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).
- For DCF, Sensitivity Table produces same results like Scenario Analysis.
- 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.