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Mark_Keithley's avatar
Mark_Keithley
Copper Contributor
Jun 17, 2022
Solved

formula not working

I’m trying to get a discounted price using the formula that my professor taught me but excel doesn’t seem to be operating properly. In the first chart I made the answer came out like I expected but in the second chart that I made Excel doesn’t seem to be calculating the answer correctly. In this formula it worked =D15/(1+'Financial Analysis'!C119)^2 but not in this formula =D30/(1+'Valuation Metrics'!C119)^2. I cannot figure out what the problem is. In the bottom chart the formula is not changing the price like it should.

  • Mark_Keithley Why would you say that? The formulae are similar though very different when it comes one particular cell it references. That is cell C119. In one formula you reference it on the Financial Analysis sheet, containing 12.4%. In the other formula you reference C119 in the Valuation Metrics sheet, but you don't show the the value of that cell. I bet it contains a number close to -0.00014299004568567. So, something like -0.001429%. The formulae do exactly what you tell it to do. If the outcome is wrong you perhaps referenced the wrong cells.

  • Riny_van_Eekelen's avatar
    Riny_van_Eekelen
    Platinum Contributor

    Mark_KeithleyWhat's in cells C119 on the two sheets mentioned in the formulae? And please confirm that both D15 and D30 refer to the cells on the sheet visible in the screenshot. If not, please clarify and show us the values in each of these cells.

     

    Both formula are similar. Please explain why one result is correct and the other is wrong. What should the correct answer be?

    • Mark_Keithley's avatar
      Mark_Keithley
      Copper Contributor

      Riny_van_Eekelen 

      I’m pretty sure that B36 should be smaller than D30 like in B17. C119 is on another sheet. Is there anyway that I can send the actual document?

       

      • Riny_van_Eekelen's avatar
        Riny_van_Eekelen
        Platinum Contributor

        Mark_Keithley Why would you say that? The formulae are similar though very different when it comes one particular cell it references. That is cell C119. In one formula you reference it on the Financial Analysis sheet, containing 12.4%. In the other formula you reference C119 in the Valuation Metrics sheet, but you don't show the the value of that cell. I bet it contains a number close to -0.00014299004568567. So, something like -0.001429%. The formulae do exactly what you tell it to do. If the outcome is wrong you perhaps referenced the wrong cells.

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