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Advanced Excel Functions

Advanced Excel FunctionsAdvanced Excel FunctionsAdvanced Excel FunctionsAdvanced Excel FunctionsAdvanced Excel FunctionsAdvanced Excel FunctionsAdvanced Excel Functions

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Seema Sarvath
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42 views

Advanced Excel Functions

Advanced Excel FunctionsAdvanced Excel FunctionsAdvanced Excel FunctionsAdvanced Excel FunctionsAdvanced Excel FunctionsAdvanced Excel FunctionsAdvanced Excel Functions

Uploaded by

Seema Sarvath
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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VLOOKUP Function:

This advanced Excel function is one of the most used formulae in Excel. It is mainly due to the simplicity of this formula and its
application in looking up a certain value from other tables, which has one standard variable across these tables. For example,
suppose you have two tables detailing a company’s employee salary and name, with “Employee ID” being a primary column.
You want to get the salary from Table B in Table A.

You can use VLOOKUP as below.

It will result in the table below when we apply this advanced Excel formula in other cells of the “Employee Salary” column.
Drag the formula to the rest of the cells.

There are three major delimitations of VLOOKUP:

1. You cannot have a primary column on the right of the column for which you want to populate the value from another table. The
“Employee Salary” column cannot be before the “Employee ID.”
2. In the duplicated values in the primary column in Table B, the first value will get populated in the cell.
3. If you insert a new column in the database (e.g., insert a new column before “Employee Salary” in Table B), the output of the
formula could be different based on the position that you have mentioned in the formula (in the above case, the result would be
blank).

 Future Value (FV): Financial Function in Excel : If you want to find out the future value of a particular investment which has
a constant interest rate and periodic payment, use the following formula –

FV (Rate, Nper, [Pmt], PV, [Type])

 Rate = It is the interest rate/period


 Nper = Number of periods
 [Pmt] = Payment/period
 PV = Present Value
 [Type] = When the payment is made (if nothing is mentioned, it’s assumed that the payment has been made at the end of the
period)

FV Example

A has invested the US $100 in 2016. The payment has been made yearly. The interest rate is 10% p.a. What would be the FV in
2019?

Solution: In excel, we will put the equation as follows –

= FV (10%, 3, 1, – 100)

= US $129.79

 Present Value (PV): Financial Function in Excel: If you know how to calculate FV, it’s easier for you to find out PV. Here’s
how –

PV = (Rate, Nper, [Pmt], FV, [Type])

 Rate = It is the interest rate/period


 Nper = Number of periods
 [Pmt] = Payment/period
 FV = Future Value
 [Type] = When the payment is made (if nothing is mentioned, it’s assumed that the payment has been made at the end of the
period)

PV Example:

The future value of an investment in the US $100 in 2019. The payment has been made yearly. The interest rate is 10% p.a. What
would be the PV as of now?
Solution: In excel, we will put the equation as follows –

= PV (10%, 3, 1, – 100)

= US $72.64

1. INDEX MATCH

Formula: =INDEX(C3:E9,MATCH(B13,C3:C9,0),MATCH(B14,C3:E3,0))

This is an advanced alternative to the VLOOKUP or HLOOKUP formulas (which have several drawbacks and
limitations).  INDEX MATCH[ 1 ]  is a powerful combination of Excel formulas that will take your financial analysis and financial
modeling to the next level.

INDEX[ 2 ]  returns the value of a cell in a table based on the column and row number.

Here is an example of the INDEX and MATCH formulas combined together.  In this example, we look up and return a person’s
height based on their name.  Since name and height are both variables in the formula, we can change both of them!

IF Function
The formula makes a statement/question, if the answer is true then one response is obtained. If the answer if false,
then another answer is obtained.
The syntax is =IF(logical_test,value_if_true,value_if_false)
Continuing on with our SUM formula from above, let’s add some verbage to emphasize whether the result is greater
or less than twenty.
The formula is =if(A5<20,”Amount is less than twenty”,”Amount is more than twenty”). The English translation is
if the value found in A5 is less than twenty THEN display the comment ‘Amount is less than twenty’ ELSE display
the comment ‘Amount is more than twenty’.

Sum function
The SUM function adds values. You can add individual values, cell references or ranges or a mix of all three. For
example: =SUM(A2:A10) Adds the values in cells A2:10.

Average function
Returns the average (arithmetic mean) of the arguments. For example, if the range A1:A20 contains numbers, the
formula =AVERAGE(A1:A20) returns the average of those numbers.

Index Match and VLookup function


The INDEX MATCH function is one of Excel's most powerful features. The older brother of the much-used VLOOKUP ,
INDEX MATCH allows you to look up values in a table based off of other rows and columns. And, unlike VLOOKUP , it
can be used on rows, columns, or both at the same time.

Present Value function:


The PV function is a financial function that returns the present value of an investment. You can use the PV function to get
the value in today's dollars of a series of future payments, assuming periodic, constant payments and a constant interest
rate. An annuity is a series of equal cash flows, spaced equally in time

In this example, an annuity pays 10,000 per year for the next 25 years, with an interest rate (discount rate) of 7%. The PV
function is configured as follows in cell C9:

=PV(C5,C6,C4,0,0)

An Annuity is a type of bond that offers a stream of periodic interest payments to the holder until the date of maturity.
An annuity provides periodic payments for a specific number of years until reaching maturity.

Unique to annuities, there is no final lump sum payment (i.e. the principal) paid back at the end of the borrowing term, as
with zero-coupon bonds.
Unlike a perpetuity, an annuity also comes with a pre-determined maturity date, which marks the date when the final
interest payment is received.
Since there is no final principal repayment, each payment is equal in value. However, payments received earlier are more
valuable due to the “time value of money.”
Earlier cash flows can be reinvested earlier and for a longer duration, so these cash flows carry the highest value (and vice
versa for cash flows received later).

Typically, the most common types of issuers of annuities are the following:
 Insurance Companies (e.g. Retirement Planning)
 Mutual Funds
 Brokerage Firms
 Mortgage and Auto Financing

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