Module VI· DCF Model BuildAdvanced
Question

How do you structure sensitivity tables for DCF, such as WACC x growth and WACC x exit multiple?

Answer

Create a two-dimensional data table with enterprise value or share price as output. Rows might be terminal growth or exit multiple; columns are WACC. Link the top-left cell to the output. Use reasonable ranges around the base case and label assumptions clearly. Check that data tables update correctly and do not break circular models.