Which Has A Greater Impact On A Company's Dcf Valuation - A 10% Chang

1.	Which Has A Greater Impact On A Company's Dcf Valuation - A 10% Change In Revenue Or A 1% Change In The Discount Rate?
Answer» You should start by saying, "it DEPENDS" but most of the time the 10% difference in revenue will have more of an IMPACT. That CHANGE in revenue doesn't affect only the current year's revenue, but also the revenue/EBITDA far into the FUTURE and even the terminal VALUE. You should start by saying, "it depends" but most of the time the 10% difference in revenue will have more of an impact. That change in revenue doesn't affect only the current year's revenue, but also the revenue/EBITDA far into the future and even the terminal value.

Which Has A Greater Impact On A Company's Dcf Valuation - A 10% Change In Revenue Or A 1% Change In The Discount Rate?

Answer»

You should start by saying, "it DEPENDS" but most of the time the 10% difference in revenue will have more of an IMPACT.

That CHANGE in revenue doesn't affect only the current year's revenue, but also the revenue/EBITDA far into the FUTURE and even the terminal VALUE.

You should start by saying, "it depends" but most of the time the 10% difference in revenue will have more of an impact.

That change in revenue doesn't affect only the current year's revenue, but also the revenue/EBITDA far into the future and even the terminal value.