
Scenario Analysis templates
What is Scenario Analysis?
Scenario analysis is the process of estimating the expected value of a portfolio after a specific period of time, making the assumption that specific changes in the values of the portfolio’s securities or key factors take place (i.e. interest rate change). It is mostly used to estimate any change in portfolio value when faced with an unfavourable event. It can be used to examine a worst-case scenario.
The technical side of scenario analysis involves computing different reinvestment rates for expected returns that are reinvested during the investment horizon. Scenario analysis estimates shifts in portfolio value based on the occurrence of different situations, known as scenarios, following the principles of ‘what if” analysis.
These assessments can be used to determine the level of risk present within a given investment as related to a variety of potential events. Depending on the analysis results, an investor can decide whether the level of risk associated with the portfolio is something he wants to pursue.
Scenario Analysis and Investment Strategy
Amongst the many approaches to scenario analysis, one of the most commonly used methods is to determine the standard deviation of daily or monthly security returns and then calculate the expected value if each security generates returns that are two or three standard deviations above and below the average return. Using this method allows analysts to gain a reasonable amount of certainty regarding the change in the value of a portfolio during a specific time period, by simulating these extremes.
Scenarios can relate to a single variable, such as the relative success or failure of a new product launch, or a combination of factors such as the product launch results combined with possible changes in the activities of competitor businesses. The aim is to analyse the results if the more extreme outcomes to determine investment strategy.
Scenario Analysis in Finance
The process used in examining potential investment scenarios can also be applied to various other financial situations to examine value shifts based on theoretical scenarios. A consumer can use scenario analysis to calculate the different financial outcomes of purchasing an item on credit. One can also use it to look at the various financial changes that can occur when deciding whether to accept a new job offer.
Scenario analysis can be used by businesses to analyse the potential financial outcomes of certain decisions. This can include considerations such as the difference of rent, insurance etc. that may exist in one location but not the other.
For more on scenario analysis:
- COVID-19 ready rolling 3 statement excel projection model across 5 year period with scenario analysis763Discussadd_shopping_cart$55.00
by Projectify
Coronavirus (COVID-19): Scenarios and Recovery
This presentation discusses 9 potential scenarios, the 4 stages of recovery, and critical business actions to take.277Discussadd_shopping_cartfreeby Flevy
Scenario Analysis - Using Macros
Excel Files to show you how to do Scenario Analysis using Macros.2,718Discussadd_shopping_cart$5.00by Prof. Ed Bodmer
DCF Model with Bear and Bull Scenarios in Excel
A DCF model built for public equity valuations, with a bull and bear scenario analysis to evaluate upside/downside risk2,774Discussadd_shopping_cart$20.00by Colin Ferrian
How to Use the Scenario Reporter
This effective scenario reporter is accompanied by a clear and easy-to-follow PDF guide and YouTube Tutorial.845Discussadd_shopping_cartfreeby Prof. Ed Bodmer
Analyzing Sales and Product Performance
Tools to analyse sales, portfolio performance, seasonal variations, price-volume-mix factors1,022Discussadd_shopping_cart$19.00by Andrei Okhlopkov
Scenario Analysis 3-Statement Projection Excel Model
User-friendly 3-statement generic Projection Model for new or existing businesses with Scenario Analysis functionality1,4696add_shopping_cart$39.00by Projectify
Sensitivity & Scenario Analysis Excel Template
How to use an excel data table for sensitivity and scenario analysis for you financial model.10,243Discussadd_shopping_cartfreeby Michael Shane
Form Controls and Other Interactive Tools in Excel
An overview of form controls, ActiveX controls and hyperlinks used in financial models.2,4442add_shopping_cartfreeby Andrei Okhlopkov
Scenario Graph Template
Visualize the different options a stock price can take according to a number of variables3,2902add_shopping_cartScenario Analysis - Adding Master Scenario Page to Any Model
9 Excel files that show you how to ad a master scenario page to any model.757Discussadd_shopping_cartfreeby Prof. Ed Bodmer
Scenario Analysis Excel Template
A tool designed to identify possible future scenarios.2,452Discussadd_shopping_cart$3.00by Alberto Scappini
Scenario Analysis in Excel
This excel file will allow to play with 3 scenarios and see the results of the scenarios in dynamic graphs.446Discussadd_shopping_cart$3.00by Big4WallStreet
User Friendly 5 Year Scenario Model - with 3 Scenarios and All 3 Financial Statements
5 year scenario model that allows for high,medium and low scenarios and creates 3 financial statements + all ratios658Discussadd_shopping_cart$100.00by Andrew de Bruyn
Startup Business Plan for General Trading with Scenario Analysis
This is startup business plan for general trading with 3 scenarios analysis143Discussadd_shopping_cart$50.00by ECF Consultancy
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