“The Scenario Planning Module taught me how to model and assess multiple projection scenarios and really opened my eyes to how changes in a company’s projections affect cash flows and valuation.”

Scenario Planning Module

In the Scenario Planning Module, trainees work from the base model created in the Financial Modeling Course and build multiple performance scenarios by altering assumptions in the model.   Three scenarios will typically be created which will include a base set of projections (“Base scenario”), an optimistic case (“Bull scenario”) and a pessimistic case (“Bear scenario”). Trainees learn how to create functionality to toggle through various scenarios in the model.   Additionally, multiple valuation analyses will be presented to show the effects on valuation of the various scenarios.

This is an advanced module for trainees who have already participated in the Financial Modeling Course. This module typically lasts one to two hours and builds from the model created in the Financial Modeling Course.   This module enables trainees to learn how to build scenario functionality into their model and determine the effects it may have on the target company.

Module Description

Trainees receive a 1-tab spreadsheet, which they copy into the financial model they have built in the Financial Modeling Course.   During this module trainees:

  • Input the various growth and margin assumptions for each scenario
  • Link in the growth and margin assumptions to the primary financial model
  • Build in toggle functionality that allows the trainee to switch amongst different scenarios
  • Build out a P&L, balance sheet cash flows and valuation analyses for each scenario
  • Analyze