Module II· Football Field & SensitivitiesIntermediate
Question
How do you set the range for each method in the Football Field?
Answer
Method-typical ranges:
- DCF: WACC ±50bps, g ±0.5% → ±10–15% EV.
- Trading comps: 25–75th-percentile range of the multiples → ±10–20%.
- Precedents: range of strategic vs. financial multiples → ±15–25%.
- LBO: IRR range 18–25% with a multiple exit → ±10–15%.
- 52-week trading range: actual min/max of the last 52 weeks.
Important
Ranges should be derived consistently within each method, not arbitrarily.
Deep diveShow more details
Pitch tip
A footnote per method — 'DCF range driven by WACC 8.5–9.5% and terminal growth 1.5–2.5%'.