Sensitivity analysis measures how changes in key assumptions impact the output of a valuation or financial model — enterprise value, IRR, DSCR. In DCF models, standard sensitivities cover WACC (±0.5–1.0%), terminal growth rate (±0.5%), EBITDA margin (±1–2 percentage points) and revenue growth (±5–10%). In LBO models, sensitivities cover EBITDA performance, exit multiple and leverage ratio. Presenting a sensitivity matrix rather than a single-point valuation provides a more honest and defensible range — essential in expert reports submitted to courts, tax authorities or boards.

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Example: a Swiss DCF model produces a base-case enterprise value of CHF 22.0 million. The sensitivity matrix across WACC (8.5%–10.5%) and terminal growth (1.0%–3.0%) generates a value range of CHF 17.5–28.0 million. The central quartile (CHF 19.5–25.0 million) is presented as the defensible valuation range, with the base case at CHF 22.0 million.

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Hectelion systematically presents sensitivity matrices in every valuation report, providing boards, auditors and courts with a transparent range rather than a false single-point precision.