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| == Sensitivity analysis == | | == Sensitivity analysis == |
| The purpose of a sensitivity analysis is to provide the reader with more depth of knowledge of the valuation process. In a situation in which the reader agree with the general principles and methodologies of valuation utilised by the analyst, but disagrees with some of the calculated or estimated numbers due to the assumptions used to arrive at said numbers, the sensitivity analysis provides further scenarios that can be considered by the reader of the valuation.
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| Firstly, the implied premium has been sensitised. It should be noted that even tiny changes to the WACC or growth rate can lead to large changes in the future share price.
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| [[File:Sensitivity1 .png|center|thumb|665x665px]]
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| Next, the enterprise value has been sensitised. It should be noted that these values are still in millions of dollars.
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| [[File:Sens2.png|center|thumb|666x666px]]
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| With the inclusion of this sensitivity analysis, the reader can get a better understanding of the large scale changes that can occur at different estimations of both the growth rate and the WACC. It also allows the reader to keep either one of the variables constant, while changing the other, incase they agree with the justifications for one variable but not the other.
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| == Peer group comparison == | | == Peer group comparison == |