About this lesson
An overview of the key functions used for financial modeling in Excel.
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In this lesson we will walk through some of the key functions used in Financial Modeling.
When to use
An overview of some of the key functions most commonly used when developing a financial model in Excel. As a rule of thumb, a formulae should be no longer than your thumb.
- Functions within formulae
- General terminology: “=FUNCTION(Argument_1,Argument_2,…)”
- Embedding Functions
- Writing formulae with functions embedded within other functions
- “Staggered Development Principle”
- ALT + ENTER to space out formulae over multiple lines
- A function can contain any or all of the following:
- Equals sign
- Function name
- Functions do not all return values, i.e. a number
- Some functions return other types of data including TRUE / FALSE, or a worksheet range
- Everyday functions:
- SUM, AVERAGE, MIN, MAX
- Logic functions:
- IF, AND, OR, NOT
- Other functions:
- CHOOSE, INDEX, MATCH, OFFSET
- Function Tips
- Press ‘F2’ to edit a cell instead of double-clicking on it
- Press ‘Esc’ to exit a cell without making any changes
- Use the ‘fx’ button next to the formula bar to learn how an Excel function works
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