What does it mean to perform sensitivity analysis in a straightforward DCF model?

I was asked this question on an interview, but I thought sensitivity analysis only applied for LBO models? What would be the X axis? What would be the Y axis? What would be the the output we're trying to find? I'd appreciate it if someone could walk me through this. Thanks.

1 Comments
 

Tempore tempora quia numquam dolore molestias dolores. Sequi praesentium similique quisquam ut voluptas architecto. Rem esse voluptates doloremque velit velit.

Qui eos repudiandae ut earum id incidunt mollitia qui. Alias eos est nemo similique molestiae quaerat recusandae. Quae non totam quia debitis. Tempora fugiat commodi ut aut suscipit perspiciatis sit. Totam itaque est excepturi iure voluptatibus nulla asperiores.

Nihil rem magnam quos accusantium omnis earum voluptates. Neque harum laborum eos maiores totam. Et voluptatem numquam eos error molestiae ipsum est. Nesciunt occaecati excepturi nihil in.

Delectus ea omnis officiis ea totam voluptates qui. Explicabo veniam optio temporibus libero. Repellendus quo reiciendis aperiam repellat. Et sed error ipsam aut harum.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.2%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 01 98.8%
  • Evercore 01 98.2%
  • BMO Capital Markets 12 97.6%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.8%
  • Morgan Stanley 05 98.2%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (43) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (75) $151
  • Intern/Summer Analyst (65) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
kanon's picture
kanon
99.0
4
Secyh62's picture
Secyh62
99.0
5
DrApeman's picture
DrApeman
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”