Change these values Change these values Not these (Hard-Coded) Not these (Hard-Coded) Change these values

Hard Coded values will automatically update, based on the values you input

The F2 key (Control+ U for Mac)will trace a Hard-Coded cells dependent cells, with color coded boxes. Alternatively, one can decipher the formula used from the formula bar

F2 Key pressed here

All these Screenshots are taken from the Target Co. tab in the Comparable_Companies_Completed Excel workbook downloaded from the books website.

Trace Precedents can be helpful to understand more complicated models, as can Show Formulas

This formula isnt as scary as it looks. It will output either the value that corresponds to $E$30/E38, or output NA. This is to ensure that, if E38 = 0, the formula wont return #/DIV or some other error. Formulas start with (=), or occasionally (+). This is interchangeable, a holdover from older programs. Formulas follow order of operations. The value ($E$30/E38) is calculated first. If Iserror ($E$30/E38) Logical_test NA [value_if_true] $E$30/E38 [value_if_false]

$E$30the $ signs are referred to an absolute reference, meaning that if a formula is copied and pasted, the numerator will always correspond to the value in E30, where the denominator will move, based on its position relative to the cell that the formula is pasted in. http://web.pdx.edu/~stipakb/CellRefs.htm explains it a little better.

You can toggle Absolute/Relative reference to a cell by selecting the cell in the formula bar, and pressing F4 (Apple+T for Mac)