I have created a model in ModelBuilder that uses the iterate tool (recursive) to search through a file directory and locate rasters for input into the model. Where my problem arises is in the output at the end of the model. I am trying to have the model output the file in the sub folder from wich the iteration pulled the raster. Below I have included images of my ModelBuilder.
You should be able to set the Parse Path tool's "Parse type" to "File Path" if you aren't already. With that, rename the output of the Parse Path tool to something more meaningful than "Value" (not necessary, but more descriptive). You can do this by right clicking the output and selecting "Rename".
With that done, you should be able to edit the output of the "Table to Excel" tool to use your named variable path inline in the "Output Excel File":
%YourParsePath%\TheFilename.xls
Ensure that the name you've chosen for the parse path output is wrapped with %s to indicate that it should be treated as a variable.
This question may be useful to you as well: Performing in-line variable substitution for path in ArcGIS ModelBuilder?
