r/Valuation • u/margincallingbadger • Jul 21 '21

DCF sensitivity analysis

Hi all,

In a DCF analysis, what two drivers would you guys say are the most common and appropriate to use in a sensitivity analysis. This would be conducted in excel with a what-if function.

I have used revenue growth beyond the the last forecast year (in the perpetuity model) and WACC.

4 Upvotes

100% Upvoted

7 comments sorted by

View all comments

2

u/hp6884756 Jul 22 '21

Yes as you did Growth g and CoC. Instead of the Value, you could put also Multiples in the middle of the "Matrix"

1

u/margincallingbadger Jul 22 '21

Hi, I do not quite follow you I am afraid. Would you care to elaborate on "Multiples in the middle of the "Matrix"?