Tool 道具 · Valuation lab
Build a range, not a target
Kaiju Beverage Co. (fictional): $1,000M revenue, $200M net debt. Choose three assumptions and watch the equity value move — then read the warning below the table.
FCF margin
Long-term growth
Discount rate
Equity value, your case
$1,690M
RANGE ACROSS THE TABLE: $718M — $9,520M
The base-case equity range is $718M to $9,520M. The result is most sensitive to the discount rate, then growth, then margin. Write down which inputs deserve the range — that sentence is the deliverable.
Sensitivity — equity value ($M)
| — | 2% growth | 5% growth | 8% growth |
|---|---|---|---|
| 8% disc | $1,330M | $2,950M | $9,520M |
| 10% disc | $948M | $1,690M | $4,660M |
| 12% disc | $718M | $1,150M | $2,230M |
Warning
A sensitivity table doesn't fix weak assumptions. Explain which inputs deserve the range.