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Financial Modeling
Unit 1
Discounted Cash Flow (DCF)
Understanding DCF Fundamentals
Calculating Free Cash Flows
Discount Rate and Terminal Value
Forecasting Cash Flows
Sensitivity Analysis and Valuation
Unit 2
LBO
Introduction to LBOs
LBO Modeling Process
LBO Valuation and Analysis
LBO Deal Structuring
LBO Case Studies
Unit 1 • Chapter 5
Sensitivity Analysis and Valuation
Summary
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Concept Check
What is the purpose of Sensitivity Analysis in Valuation?
To assess impact of assumptions on value.
To determine exact value.
To predict future earnings.
To analyze industry trends.
How does Sensitivity Analysis help in Valuation?
By showing how changes affect value.
By providing fixed valuation.
By focusing only on past data.
By ignoring external factors.
Why is Sensitivity Analysis important in Valuation?
It guarantees accurate valuation.
It decreases competition in the market.
It simplifies valuation process.
It helps in risk assessment and decision-making.
Check Answer
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Forecasting Cash Flows