Sensitivity table
Definition · Level 10 · Valuation
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A grid showing how a model’s answer changes when two key inputs move. For a DCF, the inputs are usually the discount rate and terminal growth.
Example
Brewline: $20.43 a share at 9% and 2.5%; $17.09 at 10%; $24.98 at 8%.
Where Tradecraft teaches it
Level 10 · Valuation, in the lesson “The DCF: valuing a business in four steps”: Unlevered free cash flow, terminal value, discounting at WACC, and from enterprise value to a price per share.
Related terms
- DCFDiscounted cash flow, an intrinsic valuation: forecast free cash flows, add a terminal value, discount everything at the matching cost of capital…
- Exit multipleA terminal value found by applying a peer multiple, usually enterprise value to EBITDA, to the final forecast year’s EBITDA (operating profit before…
- Terminal valueThe value of all cash flows beyond the explicit forecast, from the Gordon growth formula or an exit multiple.
- Unlevered free cash flowCash the operating business generates for all capital providers, before interest: operating profit after tax + depreciation and amortization −…
- 10-K / 10-Q / 8-KFilings with the US Securities and Exchange Commission: the audited annual report, the unaudited quarterly report, and the current report for…
- Accretive buybackA share repurchase that raises earnings per share: the earnings yield of the shares bought (EPS ÷ price) beats the after-tax cost of the cash used.