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simulation1 min readLesson 8.5

Sensitivity analysis

Finance — Advanced · 25 min

Sensitivity analysis shows how your valuation changes when key assumptions change. It's essential for understanding which variables have the most impact on your business value. Present it as a matrix with 2 variables varying simultaneously.

Key Takeaways

  • Sensitivity shows which assumptions matter most.
  • Revenue growth and discount rate have the highest impact.
  • Present as a range, not a single point.
  • Investors appreciate founders who understand model sensitivity.