Scribd Logo
Upload

Welcome to Scribd!

  • 9 views

    Excel Functions You Should Know If You're Into Finance

    Uploaded by

    GRAD64
    Financial Modeling in Excel

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Excel Functions You Should Know If You're Into Finance

    Uploaded by

    GRAD64
    9 views5 pages
    Financial Modeling in Excel

    Original Title

    Excel functions you should know if you're into Finance

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Financial Modeling in Excel

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    9 views5 pages

    Excel Functions You Should Know If You're Into Finance

    Uploaded by

    GRAD64
    Financial Modeling in Excel

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Financial Modeling in Excel

    10 Excel functions you should know

    =SUMIFS()
    SUMIFS function adds all of its arguments that meet multiple criteria.
    For example, you would use SUMIFS in your financial model to sum up
    the sales of (1) a specific employee (2) for a specific product.

    =SUMIFS
    (sum range (e.g. sales),
    criteria range 1 (e.g.
    employee),
    criteria 1 (e.g. Tim),
    criteria range 2 (e.g.
    Product),
    criteria 2, (e.g. Chairs))

    Know your IFs, COUNTIFs, AVERAGEIFs and all other IFs too - after all,
    financial modeling is just a series of IFs that could happen in this world.

    =IFERROR()
    Use IFERROR function to format your financial models. The function
    checks for errors and returns the value specified by the user if found.
    The function checks for the following errors: #N/A, #VALUE!, #REF!,
    #DIV/0!, #NUM!, #NAME? or #NULL!.

    =IFERROR(value, value_if_error)
    Financial Modeling in Excel
    10 Excel functions you should know

    =XIRR()
    Internal rate of return metric is needed to find out the annual growth
    rate of an investment. The higher the IRR, the better the investment
    (keeping all other factors the same, of course). IRR is good for
    comparing different investment opportunities.

    =XIRR(cash flow values, dates of cash flows)

    =XNPV()
    Finance is money and we all know that money today is worth more than
    tomorrow. Financial analysts oftentimes have to calculate the value of
    an investment/company/project in today’s terms.

    =XNPV(discount rate, cash flow values, dates of cash flow)

    Unlike IRR and NPV, XIRR and XNPV functions allow for payments at irregular intervals
    Financial Modeling in Excel
    10 Excel functions you should know

    =PMT()
    PMT function calculates the payment for a loan based on constant
    payments and a constant interest rate. You have to know the present loan
    value, number of periods and the interest rate. PMT, PPMT and IPMT
    functions are needed to figure out annuity loan repayments (e.g. mortgage)

    =PMT(interest rate, number of periods, present value)

    =PMT() =PPMT() =IPMT()


    calculates calculates calculates the
    periodic the payment interest
    payment for on the princi- payment on
    a loan in total pal for a loan the loan

    =SLOPE()
    If you’re into investment banking, at some point you’ll have to calculate the
    Beta of a stock, which means volatility. By using the SLOPE function in Excel,
    you’ll find it easily by using the returns of the stock and the comparative
    benchmark index.

    =SLOPE
    (% of equity change range,
    % range of change of index)
    Financial Modeling in Excel
    10 Excel functions you should know

    =XLOOKUP
    Lookup functions are a must to know for any modeler. They are used to
    quickly and easily find data in a table, for example, to find the amount
    sold by an employee, ID number, and thousands of other things.

    =XLOOKUP(what do you want to look up, where can it be found,


    what do you want to return)

    =INDEX() & MATCH()


    Sometimes, XLOOKUP won’t do the job, as it can only compare one
    array with another one. Index and Match function combination can look
    up values in the whole table - it’s 2 Dimensional.

    =INDEX
    (what you want to return,

    =MATCH
    (what are you looking
    for, where can it be found)
    Financial Modeling in Excel
    10 Excel functions you should know

    =EOMONTH()
    EOMONTH function finds the last day of the month after you add a specific
    number of months to a date. It’s useful for calculating maturity dates or due
    dates that fall on the last day of the month. It also aids in setting up your
    financial model.

    =EOMONTH
    (start_date,
    months you want
    to add/substract)

    =EDATE() will aid in


    adding months to a
    specified start date

    =SEQUENCE
    The SEQUENCE function allows you to generate a list of sequential numbers
    in an array. SEQUENCE function works great if you need to generate a list of
    10,000 numbers in a column.

    =SEQUENCE (number of rows you want to generate, number of


    columns you want to generate, starting point, step)

    You might also like