In this guide, we will look at how LOOKUP might be used to match constants with corresponding dates in a horizontal timeline. Our example is based on escalation factors – where the last date dependent constant is assumed to apply to all remaining periods in the timeline. Hence our requirement is for an approximate match.

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DATA PICKUP
FUNCTIONS:
LOOKUP

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4. DATA PICKUP FUNCTIONS:
LOOKUP
In this guide, we will look at how LOOKUP might be used to match
constants with corresponding dates in a horizontal timeline.
Our example is based on escalation factors – where the last date
dependent constant is assumed to apply to all remaining periods in the
timeline.
Hence our requirement is for an approximate match.
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DOWNLOAD THIS GUIDE
AND THE ACCOMPANYING
EXCEL EXAMPLE
DOWNLOAD DATA PICKUP
FUNCTION: SUMIF
DOWNLOAD DATA PICKUP
FUNCTION: INDEX / MATCH

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HANDBOOK.
WORKINGS OF LOOKUP
In this example, we are using LOOKUP to match a model period ending date with a sequence of
dates in column E. LOOKUP considers the last date first – hence the importance of setting out the
constant dates in chronological order.
If the model period end date is greater than or equal to the constant date then it will return a match.
If not, it will test against the date one row up from the previous date.
We have specified that once a match is found then a corresponding value from column F should be
returned. If no match is found (i.e. the model period end date falls before all of the dates column E)
then the formula returns #N/A.
1
1

6. financialmodellinghandbook.comFinancial Modelling
HANDBOOK.
ADVANTAGES OF LOOKUP
1. The trace precedent arrows are identical to those that arise when using INDEX / MATCH. However,
here we are using a single function – and a single calculation block.
2. Unlke SUMIF on its own, LOOKUP can be used for approximate matches.
3. Unlike SUMIF, invalid answers generate #N/A errors.

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HANDBOOK.
DISADVANTAGES OF LOOKUP
1. LOOKUP requires careful explanation. It tends not to be as well understood as VLOOKUP – even
though (arguably) it is more straightforward and intuitive.
2. Dates set out in column E must be presented in chronological order.
3. LOOKUP on its own is not suitable for finding exact matches.

8. financialmodellinghandbook.comFinancial Modelling
HANDBOOK.
SUMMARY
We have considered four Excel functions over four guides in determining how best to match a set of
date dependent constants to their corresponding dates on a horizontal timeline.
VLOOKUP is effective but relies on hard coded data in a relatively complex formula. VLOOKUP may
be used for exact or approximate matches.
INDEX and MATCH is a well understood combination but requires two functions to achieve a task
that VLOOKUP achieves on its own. INDEX and MATCH may be used for exact or approximate
matches.
SUMIF is a possible alternative for exact matches. However, SUMIF returns as zero those values
that other functions would return as #N/A errors.
LOOKUP is a possible alternative for approximate matches.