Monte Carlo Simulation - NPV example

To Download the XLS file: xluis.gumroad.com/l/montecarlo
Also review: Sensitivity Analysis - Two Variable Data Table • Sensitivity Analysis ...
Recommended Books at Amazon:
Building Winning Algorithmic Trading Systems, + Website: A Trader's Journey From Data Mining to Monte Carlo Simulation to Live Trading (Wiley Trading) amzn.to/2DAxOyZ
Explorations in Monte Carlo Methods (Undergraduate Texts in Mathematics) amzn.to/2TfBCe2
Follow me at
LINKED IN: / luisolano
FACEBOOK: / luisolanoms
Monte Carlo Simulation in NET PRESENT VALUE (NPV)
Let me know your comments, Thanks......

Пікірлер: 776

  • @samantham6831
    @samantham683111 жыл бұрын

    Thank you sooo much!! I had to do a NPV analysis for my university assignment and you helped me sooo much..Thank you for attaching the template as well :D Life saver!

  • @henrytep8884
    @henrytep88848 жыл бұрын

    Thanks for the spreadsheet Mr. Luis. It is a great tool in learning how to build a monte carlo simulation.

  • @jaspermunier
    @jaspermunier2 жыл бұрын

    Many thanks Luis for this great video and for sharing the file. Very insightful! Def one of the best explanatory videos on this topic on KZread.

  • @AWESOMEAzA12
    @AWESOMEAzA12 Жыл бұрын

    Brilliant video, thank you Luis so much for sharing and for sending the file over quickly! Absolute legend!

  • @hs2324
    @hs23242 жыл бұрын

    Hi Luis. A truly amazing and relevant example for many folks who do this type of analysis for various projects. Thanks again for creating this video and spreadsheet and helping non-financial folks get a step closer to understanding the financial world better!

  • @JaiisonBANKS
    @JaiisonBANKS4 жыл бұрын

    Short vid, informative and to the point. Best you can ask for. Thanks Luis

  • @Balsimedeck
    @Balsimedeck4 жыл бұрын

    This is an excellent video. Luis. We have a lot to learn from you! Keep posting these awesome tutorials please. Gracias y un fuerte abrazo hermano!

  • @laurafosci
    @laurafosci7 жыл бұрын

    Thanks for the spreadsheet. I received it short after I sent you the email. Its very good for me to practice my Monte Carlo simulation

  • @geoffarnold8027
    @geoffarnold80278 жыл бұрын

    Thanks for sending the model Luis; I appreciate your sharing it.

  • @vanja5023
    @vanja50238 жыл бұрын

    Hi Luis, many thanks for the spreadsheet - well received and very useful!

  • @ryannagle3156
    @ryannagle31568 жыл бұрын

    This could be exactly what I needed, thank you Luis!

  • @lukasresch1972
    @lukasresch19728 жыл бұрын

    Thank you much Mr. Olano!!! Thank you for best Monte Carlo Simulaion ever!!!!!!

  • @jonskinner7858
    @jonskinner78588 жыл бұрын

    Hi Luis, thank you for the sending the spreadsheet and for such a quick response.

  • @hempy1971
    @hempy19719 жыл бұрын

    Thank you Luis! Excellent video and you are very generous for sharing this tool.

  • @Atehrchen
    @Atehrchen4 жыл бұрын

    thanks a lot Luis. I received your Workbook, helped a lot! Keep up the good work!

  • @VSP4591
    @VSP45918 жыл бұрын

    I think this is VERY nice example of Monte-Carlo analysis and EPV calculation. Thank you

  • @shucukuchen
    @shucukuchen5 жыл бұрын

    Thank you for sending me the file Luis. Good work! Best wishes to you, Ricardo

  • @ssarabiat
    @ssarabiat7 жыл бұрын

    Sent the E-mail and got the sheet in less than 24 hours...great guy and great content.

  • @ht2094
    @ht20943 жыл бұрын

    Thank you so much Mr.Olano for sending me the file! You are a saviour!

  • @varaprasadsivapuram2263
    @varaprasadsivapuram22638 жыл бұрын

    Hi Luis, Thanks for sending the excel file and spreading the knowledge. You are prompt, an awesome guy, just like your simulation :)

  • @germanbalyanin2871
    @germanbalyanin28718 жыл бұрын

    Thanks, Mr. Olano, this was a very helpful guide!

  • @gamzekaraa5506
    @gamzekaraa55066 жыл бұрын

    Definitly, a very useful work, thank Luis in advance

  • @projsanti
    @projsanti6 жыл бұрын

    Very clearly explained, Thank you Luis..

  • @gayansamarakoon8092
    @gayansamarakoon80925 жыл бұрын

    Thanks @luis. Great video and thank you so much for sending me the spreadsheet.

  • @vts1905
    @vts19057 жыл бұрын

    Thanks for sharing the template and answering my question. Good day.

  • @lanaawada9348
    @lanaawada93486 жыл бұрын

    Thank you very much Luis for sending the excel file, it is very much appreciated

  • @bl7645
    @bl76455 жыл бұрын

    Thanks for the file Luis. You're a legend

  • @Maximus18.6
    @Maximus18.63 жыл бұрын

    Thank you very for this amasing example of Monte Carlo implementation

  • @hrieck1
    @hrieck1 Жыл бұрын

    Absolutely great. Very thankful for providing the download link. All the best from Germany!

  • @divaldinomendes8708

    @divaldinomendes8708

    10 ай бұрын

    Hi, could you please send me the download link? Thanks in advance.

  • @danieltoth5001
    @danieltoth50015 жыл бұрын

    Thanks a lot for your help. I have received the spreadsheet. Your video is very helpful.

  • @aissajez911
    @aissajez9115 жыл бұрын

    Great video, very clear and complete..thank you sir

  • @dilijasi
    @dilijasi11 жыл бұрын

    Short and sweet, easy to comprehend..thanks

  • @marcelowarwick8190
    @marcelowarwick81908 жыл бұрын

    Thanks for the spreadsheet and video Luis.

  • @prasadkamath1205
    @prasadkamath12055 жыл бұрын

    excellent video, very helpful and thanks for sending the file as well. very kind of you!

  • @navs8603
    @navs86034 жыл бұрын

    Fantastic. Super video. Thank you!

  • @goodtimenow2023
    @goodtimenow20238 жыл бұрын

    Hi Luis, I received your spreadsheet. Thank you so much!

  • @fildimov1364
    @fildimov13649 жыл бұрын

    Thank you, Luis, for the file! Appreciate it!

  • @yanharlan2719
    @yanharlan27196 жыл бұрын

    Thanks for the excel file, Luis... It's really helpful...

  • @fam.acc.g.8488
    @fam.acc.g.84887 жыл бұрын

    Thank you for sharing the spreadsheet, Luis! Everything is working as intended :)

  • @divaldinomendes8708

    @divaldinomendes8708

    10 ай бұрын

    Hi, could you please send me the download link? Thanks in advance

  • @fabriceb4715
    @fabriceb47154 жыл бұрын

    Thanks a lot Luis, file received, this is really helpful

  • @inovationANAS
    @inovationANAS5 жыл бұрын

    Thanks a lot for sending me the file and for your swift response! Your video is amazing !!

  • @divaldinomendes8708

    @divaldinomendes8708

    10 ай бұрын

    Hi, could you please send me the download link? Thanks in advance.

  • @btruth1
    @btruth19 жыл бұрын

    Great video Luis

  • @tzauron
    @tzauron10 жыл бұрын

    Excellent video! Thank you!

  • @goalshd3595
    @goalshd35957 жыл бұрын

    Received with thanks, This is really awesome work.

  • @ashimneupane1234
    @ashimneupane12348 жыл бұрын

    Thanks a lot for your kind support. I have received the excel file. The file is very good. Thanks a lot.

  • @RodCoelho
    @RodCoelho7 жыл бұрын

    Thank you for the file Luis. It was very helpfull!

  • @Baba598
    @Baba5987 жыл бұрын

    I have received the file, THANK YOU Luis ! it will be very helpful to me. Saludos!

  • @mohamedheeraab2848
    @mohamedheeraab28488 жыл бұрын

    Thanks a lot Mr. Olano for your kind support, I have received the excel sheet. Regards

  • @phuliphongmap5180

    @phuliphongmap5180

    5 жыл бұрын

    Mohamed Heeraab Can I get the excel sir: truonghungtinh@gmail.com. Thanks in advanced.

  • @vickieangco4727
    @vickieangco47272 жыл бұрын

    Hi. Thank you very much for sharing this video. It is a great help in my work.

  • @user-ni5ol3iw1e
    @user-ni5ol3iw1e5 жыл бұрын

    Thank you so much Luis. I've received the file. I'm student live in thailand.

  • @CineGangSG
    @CineGangSG7 жыл бұрын

    Awesome Sauce! Thank you sir for the great video!

  • @pedalforthelife

    @pedalforthelife

    7 жыл бұрын

    You are welcome James!

  • @13tosh
    @13tosh8 жыл бұрын

    Thanks Luis, for the file. It was a great help

  • @tinashekapuya3956
    @tinashekapuya39567 жыл бұрын

    Hi Luis - I received the excel file. Many thanks for this. I really appreciate.

  • @judepereira2019
    @judepereira20196 жыл бұрын

    Brilliant.... Thanks for sharing

  • @mhamedhammoudi8630
    @mhamedhammoudi86305 жыл бұрын

    I wish to thank you so much for your explanation

  • @joshtomlin6939
    @joshtomlin69396 жыл бұрын

    Wow! Really impressed with the quality of this spread sheet! Thanks Mr. Luis.

  • @pedalforthelife

    @pedalforthelife

    6 жыл бұрын

    Thank you Josh .... let me know if you will need the file

  • @reginalinda3225

    @reginalinda3225

    4 жыл бұрын

    @@pedalforthelife I need, can you please send to me? reginafranco_96@hotmail.com

  • @pedalforthelife

    @pedalforthelife

    4 жыл бұрын

    @@reginalinda3225 i have sent you the file .......... best regards!

  • @archardjuniorkweyamba1303

    @archardjuniorkweyamba1303

    2 жыл бұрын

    Can you please send me the file ?

  • @arnoldpramudita4029
    @arnoldpramudita40294 жыл бұрын

    I have received the file. Thank you LUIS!

  • @parksungryong
    @parksungryong12 жыл бұрын

    thanks for your kind lecture and you gave the original files thorught internet and I could got it today. thanks again for your sharing cool knowledgement

  • @dezi0312
    @dezi03125 жыл бұрын

    Thank you very much Luis. I've received the file. Thanks

  • @ChristopherOkhravi
    @ChristopherOkhravi6 жыл бұрын

    Very interesting. Thank you!

  • @motebmarei1742

    @motebmarei1742

    6 жыл бұрын

    Hello, Would you please send me the excel file on: eng.marei2014@hotmail.com

  • @adiarra07
    @adiarra072 жыл бұрын

    Hi Luis, thanks for this, I received the file, very helpful. Thanks

  • @hilmand4795
    @hilmand47956 жыл бұрын

    Thank you for the file Luis

  • @leoyoel
    @leoyoel4 жыл бұрын

    Thank you very much indeed for sharing!!!

  • @turtulara
    @turtulara8 жыл бұрын

    Thank you so much Mr. Luis , I have received the file!

  • @jadwigamikulic9408
    @jadwigamikulic94088 жыл бұрын

    Luis, thank you for sharing. I've got your spread sheet!

  • @lukasresch1972
    @lukasresch19728 жыл бұрын

    Thanks for sending the excelsheet it will be very helpfull for me!!!

  • @javadkhoshnevisan
    @javadkhoshnevisan9 жыл бұрын

    Luis, nice video!

  • @zalravil
    @zalravil11 жыл бұрын

    Great work!!!

  • @xluisc
    @xluisc11 жыл бұрын

    Very good and useful . Thanks!!!

  • @dimohamburg1969
    @dimohamburg19697 жыл бұрын

    Thanks for sending the file!

  • @sitisalihah64
    @sitisalihah649 жыл бұрын

    hai Luis, this is a very good video... tq for sharing

  • @williampasieka3448
    @williampasieka34488 жыл бұрын

    Hi Luis, interesting video. I am new to Monte Carlo simulations so forgive my naivety. Two questions. 1) why did you set the 1000 trials based off of your NPV value? This value was already calculated by random number generation. You are therefor basing your trial 1000 simulations based off a single random simulation, this is why the distribution left skewed. Does this not provide inaccurate results? 2) This doesn't tell us anything other than given enough trials your NPV calculation would naturally converge to the statistical distribution that we would normally see on a normal bell curve. As there's only one variable, growth rate, could we not just look up the different levels of probability based on normal distribution and multiply it by growth rate and come up with generally the same results in much less work? This seems a classic way to over complicate a very simple issue.

  • @jiimmymorelos9288
    @jiimmymorelos92886 жыл бұрын

    Un millon de gracias

  • @khaledjomaa78
    @khaledjomaa788 жыл бұрын

    Thank you so much Mr. Luis , I have received the file

  • @bingyuzhang8023
    @bingyuzhang80238 жыл бұрын

    Received by email! Thanks a lot!!

  • @SuperGGREAT
    @SuperGGREAT6 жыл бұрын

    Hi Luis! What kind of restrictions can I add to this type of model?

  • @kropinskipawel
    @kropinskipawel11 жыл бұрын

    well done mate! good work :)

  • @dmitrybaranov5638
    @dmitrybaranov56387 жыл бұрын

    Hi Luis. I've received file, thanks you so much.

  • @niusean8826
    @niusean88269 жыл бұрын

    Hi Luis, I have received your file, thanks for your great help. M-C Simulation is an excellent application for the Pulp and Paper investment analysis Thank you again for your great video and excel file ~

  • @pedalforthelife

    @pedalforthelife

    9 жыл бұрын

    Hi Niu: You are welcome!

  • @andresflores1399
    @andresflores13998 жыл бұрын

    Luis. Thanks for the file. Is very good

  • @fadzlin-9575
    @fadzlin-95757 жыл бұрын

    many thanks sir..I've already received it

  • @kumbakrishna6129
    @kumbakrishna61295 жыл бұрын

    Thanks for sharing the template

  • @DungTran-lz4ii
    @DungTran-lz4ii9 жыл бұрын

    I received your file. Thanks Luis

  • @danielsafaee4255
    @danielsafaee42559 жыл бұрын

    Thanks, spreadsheet received!

  • @TheBlazika
    @TheBlazika11 жыл бұрын

    Thank You for the video Mr. Luis, it very useful. What if both benefits and cost for the project are random numbers (exp. costs are with uniform distribution, and benefits are with with normal distribution)? How do I change this table for that kind of case?

  • @alexmikhaylov8259
    @alexmikhaylov82597 жыл бұрын

    Thank you Great video

  • @dpakasa
    @dpakasa8 жыл бұрын

    Hi Luis, thank you for sharing this video, it was very interesting. Would you mind also sharing the file?

  • @user-dl8qt7nf8g
    @user-dl8qt7nf8g7 жыл бұрын

    Thank you very much

  • @oluwaseunoyekola3933
    @oluwaseunoyekola39339 жыл бұрын

    Thanks Luis, I got the file. I appreciate the assistance

  • @zeriguineyacine4333

    @zeriguineyacine4333

    9 жыл бұрын

    Oluwaseun Oyekola please can you send me the file zeriguineyacine@gmail.com

  • @her28
    @her287 жыл бұрын

    Hello, great video! Thank you. Why does you average NPV only take into account cells B42:B141?? Are you not using the whole sample?

  • @pedalforthelife

    @pedalforthelife

    7 жыл бұрын

    At the 'Monte Carlo Simulation Results' table ( Cell B36 Formula) , NPV Mean = AVERAGE(B42:B1041) ..... i.e. the AVERAGE of the 1,000 interactions and calculations from the above NPV model ( NPV calculated 1,000 times on each interaction of the spread sheet) .... all these parameters belong to the RED graph : NPV Normal Distribution ........

  • @zakariajohnrashid1785
    @zakariajohnrashid17857 жыл бұрын

    Thanks for the document Luis Olano.

  • @istvantamas6027
    @istvantamas60277 жыл бұрын

    Hello, thank you for the excel file!

  • @Balsimedeck
    @Balsimedeck4 жыл бұрын

    Luis. Thanks for sending the file. The only thing I added was the Probability of NPV < 0: normdist(npv, npv mean, npv standard deviation,0) and added and NPV distribution graph to test again for the prob. of negative NPVs. Wondering what your thoughts are about this. Please share. Saludos cordiales.

  • @archardjuniorkweyamba1303

    @archardjuniorkweyamba1303

    2 жыл бұрын

    Please send me the file bro ?

  • @KessieXS
    @KessieXS11 жыл бұрын

    I liked it alot!

  • @KK-qp8ed
    @KK-qp8ed7 жыл бұрын

    Thank you for the help i got the sheet....

  • @laurasavu6168
    @laurasavu61685 жыл бұрын

    I've received the file.Thank youuu!

  • @reginalinda3225

    @reginalinda3225

    4 жыл бұрын

    can you send to me?

  • @samsonmusa3769
    @samsonmusa3769 Жыл бұрын

    Brilliant video. Please how do you solve for discounted cash flow for say 10 years when you have only uncertain inputs in a question? I hope i get a reply :(

  • @loiclux
    @loiclux7 жыл бұрын

    This is brillant. This is old but not getting old, still famous! -:) I also sent you an email.. :-)

  • @loiclux

    @loiclux

    7 жыл бұрын

    got it thanks!!

  • @pedalforthelife

    @pedalforthelife

    7 жыл бұрын

    Thank you Loic!

  • @Prof.Imadeddin-Almosabbeh
    @Prof.Imadeddin-Almosabbeh4 жыл бұрын

    Thank you Dear Luis. could plz explain the relationship between Z and probability (rand() or p).

  • @pedalforthelife

    @pedalforthelife

    4 жыл бұрын

    If we call NORMINV(p, mu, sigma), Excel computes Mean + sigma*NORMSINV(p) ... where z = NORMSINV(p)

  • @mhm109
    @mhm1097 жыл бұрын

    thanks, well received

  • @paulshin6182

    @paulshin6182

    7 жыл бұрын

    Can you forward the spreadsheet to pshindhs@gmail.com? Thank you in advance