Various Scenarios in Your Model
Happy New Year everyone.
I'm putting together a model as supplementary content for BB bank that I'm the process with. I'm currently building out my sales projection (for a HC sector company, non biotech/pharma) and a dilemma popped up. Should I have Base, Outperform, Underperform sales scenarios in my model?
The reason I ask is that I have several models from my internship that top ER analysts put together, and there are no different scenarios for sales projections. Just one. I'm thinking that these 4 analysts were confident in there projection and only felt the need to have one case. These models are also highly complex. One is for XOM and is a beast.
Do the models that you put together, or models you grab from SS analysts have various scenarios that you can alter?
I'm thinking that I should just throw it in there. However I'm going pretty granular and breaking it down by each product (this is a multi bn company) and dont want things to look cluttered. I guess I can just build it so it shows only the selected case at a time.
Appreciate the help / advice.
It impresses people more if you have clear understanding of the drivers of the business. Base / Bull / Bear cases are great, but only do that if you have confidence the assumptions that go into those cases make sense, because anything you put in your model is fair game during an interview.
Yep that's kinda what I figured. Appreciate the feedback. I'm going to go with 3 different cases and have a thesis tailored to each product.
What do you do for your models?
Your instagram is great btw
Thanks! I knew some other sector teams have a bull / bear / base toggle in their model. Not all teams do that tho.
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