Monte Carlo Simulation – Excel Template

Monte Carlo Simulation

Monte Carlo simulation is one of the most famous and widely applied finance techniques. This is a tool that helps us deal with uncertainty in complex situations.

It steps on the premise that one of the best ways to deal with multiple uncertain variables is to generate a large number of random observations for each of them. So, you can create a joint distribution of the different possible outcomes, resulting from the combination of the random variables.

This technique is preferred by analysts who would like to gain an understanding of the different possible realizations that could be obtained through a given distribution function.

Another related topic you might be interested to explore is Binomial trees.

This is an open-access Excel template in XLSX format that will be useful for anyone who wants to work as a Statistician, Business Intelligence Analyst, Data Scientist, Portfolio Manager, or Risk Manager.

You can now download the Excel template for free.

Monte Carlo Simulation is among the topics included in the Quantitative Methods module of the CFA Level 1 Curriculum.

3-Statement Model – Excel Template

The P&L, Balance sheet, and Cash flow statements are three interrelated parts. The P&L feeds net income on the

3-Statement Model – Excel Template

The P&L, Balance sheet, and Cash flow statements are three interrelated parts. The P&L feeds net income on the liabilities and equity side of the Balance sheet. At the same time, we obtain Cash (an asset) by summing the bottom-line result of the Cash flow statement with previous year...
Learn More

Cash Flow – Excel Template

The cash flow statement shows how a company generated and spent cash throughout a given timeframe. An important truth

Cash Flow – Excel Template

The cash flow statement shows how a company generated and spent cash throughout a given timeframe. An important truth that is frequently neglected by inexperienced business owners is that profit does not equal cash. Every business owner and manager needs to have a clear idea of the cash flows...
Learn More

Balance Sheet – Excel Template

If the P&L statement shows how profitable a company was over a given timeframe, we can say that the

Balance Sheet – Excel Template

If the P&L statement shows how profitable a company was over a given timeframe, we can say that the Balance sheet is like a momentary picture of the firm’s condition at the time of preparation. The Balance sheet shows what a company owns (assets) and what it owes (liabilities...
Learn More