From the course: Financial Modeling Foundations

Unlock this course with a free trial

Join today to access over 24,900 courses taught by industry experts.

Limits of financial models

Limits of financial models

From the course: Financial Modeling Foundations

Start my 1-month free trial Buy for my team

Limits of financial models

“

- [Instructor] We've talked a lot about financial models, and they're very useful, and I love the ability in Excel to go through and customize them based on your particular needs. But you have to remember that financial models are just a tool and they're only as good as the user. As a result, you wanna be aware of the limitations on financial models, in particular, when you're going through and building models, pay attention to issues like technical errors, inaccurate assumptions, unforeseen circumstances, or issuers if you're reviewing someone else's model that the modeler themselves might have missed. Let's turn to each of these one at a time, starting with technical errors. Now, there's a variety of technical errors that can come up in Excel, but overall, Excel is a great product, and we wanna be careful about reviewing our models to avoid any issues with these kinds of errors. The most common problem, or probably at…

Contents