From the course: Financial Modeling Foundations

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Model outputs

Model outputs

From the course: Financial Modeling Foundations

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Model outputs

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- [Instructor] Financial models are all about output. We build them so that we understand what will happen in a set of scenarios, given an assumption that we're making about a firm or a buyout or an investment, whatever. Let's take a look at how we can think about and understand the output for one of these models. I'm in the 0505 begin Excel file. Now, what we have here our buyout model, and one of the most critical pieces of information that we would have from this model is what the implied price per share is based on our projections, right? Now, we see initially the price per share is 268.80. Now, we can go through and we could flip this and change our scenario. So instead of scenario one, it's scenario two, and now our base share price changes from 268 all the way up to 371. Or if we go to scenario three, it's 455. But let's take a look at where that comes from. So I'm gonna trace dependence and we'll see that price…

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