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What Types Of Sensitivity Analyses Would We Look At In A Dcf?

Answer»

Example sensitivities:

  • REVENUE GROWTH vs. Terminal MULTIPLE
  • EBITDA Margin vs. Terminal Multiple
  • Terminal Multiple vs. DISCOUNT Rate
  • Long-Term Growth Rate vs. Discount Rate

And any COMBINATION of these (except Terminal Multiple vs. Long-Term Growth Rate, which would make no sense).

Example sensitivities:

And any combination of these (except Terminal Multiple vs. Long-Term Growth Rate, which would make no sense).



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