Use the Shareholder Value tab to perform a sensitivity analysis using a limited number of value driver variables from the Shareholder Value model. Because this is a subset, calculations are faster and Strategic Finance aligns the sensitivity analysis with the Full Model.
To set the shareholder value options for sensitivity analysis:
In Sensitivity of, select the variable for sensitivity analysis:
Cumulative Present Value of Cash Flows
Present Value of Residual Value
Shareholder Value per Share
In As , select a display option:
Displays the actual calculated values in the current file's scale.
Displays the change from the current value.
Displays the percentage change from the current value.
In Relative to (top), select the top variable of the matrix on which the sensitivity is performed in addition to the increment type and amount.
This includes these value drivers:
Sales Growth Rate
Incremental Fixed Capital Investment
Incremental Working Capital Investment
Cost of Capital
Residual Value Cost of Capital
Residual Value Tax Rate
The default is Sales Growth Rate unless you run Sensitivity Analysis with another value.
In Change % , enter the percent multiplied or added to the Relative to account.
You cannot enter negative amounts.
If you enter 2% for Sales Growth Rate here and select Multiplying in the Change % field, Strategic Finance multiplies Sales Growth Rate by 98% to obtain the -2% result and multiplies Sales Growth Rate by 102% to obtain the +2%. So, 10% becomes 9.8% and 10.2%.
If you enter 2% for Sales Growth Rate here and select Adding in the Change % field, Strategic Finance adds or subtracts 2% to obtain the result. So 10% becomes 8% and 12% growth rate.
In And relative to (left), select the left variable of the matrix on which the sensitivity is performed.
The variables are the same as in the Relative (top) text box. Default: Profit Margin.
In Change % , enter the percent increment for the left variable. The rules in the Change % for the top variable field apply.
In Change by, specify how to modify the variable, such as adding the percentage or multiplying the variable by a percentage.