From the course: Financial Modeling Foundations

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Adding toggles to a financial model

Adding toggles to a financial model

From the course: Financial Modeling Foundations

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Adding toggles to a financial model

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- [Instructor] One of the most useful tools in Excel modeling are toggles. Let's take a look at how these work. I'm in the 0504 begin Excel file. So we have here our three statement model, our DCF, and our LBO for Acme Inc. And you'll notice that I've added something here. This is a toggle, right? And we have a scenario very clearly laid out, and you'll see I've added a comment here. We have gray sky is number one, base case is number two, blue sky is number three. And then down below I've added in net income here, which I'm just gonna say is my KPI, right? I don't wanna have to go looking for that. I'm most interested to see just what the model shows the net income will be under various scenarios. So you'll see I've got one in here. Let's see what happens when I flip this to two. Well, it flips to 19,664. Now where is this pulling from down here, okay? So down here, down below, we have, it's coming right off of our…

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