From the course: Financial Modeling Foundations

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Sensitivity analysis and financial models

Sensitivity analysis and financial models

From the course: Financial Modeling Foundations

Sensitivity analysis and financial models

- [Instructor] When it comes to financial modeling, you need to understand the different strategies that are out there so that you can build financial models appropriate to the circumstances. I'm in 03_02_Begin Excel file. So this is our basic three statement model. And if you remember, one of the key things that we did here early on was we went through and we figured out how we were gonna forecast our revenue growth. That decision, we kind of glossed over it at the time, but that's actually the most important decision of anything else that we did along the way, right? And that decision then is gonna drive everything else that comes after it. So let's take a look at what would change if we were to go through and use a different method. All right, so we used an assumption around constant price and basically just built in assumptions around revenue growth based on market share growth and overall market growth. What if…

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