Module II· Football Field & SensitivitiesAdvanced
Question
Which typical Football Field manipulations should you recognize and avoid?
Answer
Common manipulations:
- Comp-set 'cherry-picking' — selecting only comps with high multiples → an artificially high range.
- Not excluding outlier multiples → an artificially wide range that suggests more optionality.
- Prominently showing the method with the desired value while omitting unfavorable methods.
- Asymmetric sensitivity — showing only 'positive' variable changes (g up) and omitting the negative ones.
- Adjusting DCF assumptions backwards to hit the comps range.
Deep diveShow more details
Pitch tip
Senior MDs spot manipulations — the Football Field must be methodologically clean, or it delegitimizes the entire valuation. 'Trust through methodological rigor' — a better strategy than forcing desired values.