Sensitivity Analysis in Excel with Finance Examples

Sensitivity Analysis in Excel with Finance Examples

Sensitivity analysis helps us study the uncertainty in the output of the model with the changes in the input variables. It primarily does stress testing of our modeled assumptions and leads to value added insights. In the context of DCF valuation, Sensitivity Analysis in excel is especially useful in finance for modeling share price or valuation sensitivity to assumptions like…

Treasury Stock Method – Complete Beginner’s Guide!

Treasury Stock Method - Complete Beginner's Guide!

Employee Stock Options are complex call options granted by the companies as a part of the remuneration package. When stock options are exercised in large quantitites, it can have a significant impact on the total number of outstanding shares thereby diluting the EPS and negatively affecting the valuations of the firm. To comply with GAAP, the dilutive impact of…

ACA vs CPA – Are They Similar?

Financial Accounting continues to remain one of the most important fields in financial industry and there is an ever growing demand for competent professionals in global financial institutions. To gain accreditation in accounting, it would be advisable for professionals to choose a certification program which fits in with their individual preferences, educational qualifications and work…

Macroeconomics vs Microeconomics

Macroeconomics vs Microeconomics

Macroeconomics vs Microeconomics – The heading says it all and I guess you already have an idea about it. Nevertheless for those who don’t have much of an idea, Microeconomics and Macroeconomics [herein micro and macro economics] are the two broad branches in the vast field of ‘Economics’ and I say ‘vast’ because together, both…

CIPM vs Claritas – Which Is The Right for You?

CIPM vs Claritas – Which is Right Program for you? Choosing between CIPM and Claritas examination should not be very difficult if you know what exactly are they meant for. CIPM deals primarily with Investment Performance Analysis and presentation. However, Claritas is all about broad introduction to finance. CIPM is meant for people looking for specializing within a…

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