Enter your email address to download and customize spreadsheets for free
Sensitivity analysis aids in investment decision making by providing a way to predict the outcome of an investment based on changes in certain variables. It allows investors to understand how different values of an independent variable impact a particular dependent variable under a given set of assumptions. This process can also highlight where the investment might be most vulnerable to changes in certain variables. In the context of the provided content, sensitivity analysis can help compare the efficiency of capital use between companies by showing how changes in variables like Return on Invested Capital (ROIC), reinvestment rate, and valuation multiples could affect net income and equity value forecasts.
Question was asked on:
Do you need to weigh up several investment projects or public companies to invest in? This spreadsheet compares the efficiency of capital use between companies based on assumptions of Return on Invested Capital (ROIC), reinvestment rate and valuation multiples. Then, net income and equity value forecasts are derived and returns are compared over the long term by the company. The sensitivity of returns to the core assumptions is also provided.
Asked on the following spreadsheet:
Need help with which companies or projects to invest in? As a key driver of value in business, ROIC measures how well the company deploys its capital....
Download free weekly spreadsheets
Enter your email address to download and customize spreadsheets for free
Not for commercial use
Download 'ROIC & Investment Valuation' spreadsheet — 4 sheets
+39 more spreadsheets per quarter
that's $3 per spreadsheet
/ Quarterly
Commercial use allowed. View other plans
This book will not teach you how to beat the market. However, it will teach you how to reduce risk, protect your capital from loss and reliably generate sustainable returns over the long run. Warren Buffett calls the Intelligent Investor "by far the best book on investing ever written." The Intelligent Investor by Benjamin Graham gives you everything you need to equip yourself with the investor's mindset necessary to avoid the panic of market fluctuations that plague the ordinary investor. Don’t be ordinary. Be intelligent.
Discover a new approach to wealth management and start with small steps that can eventually lead to substantial assets. Robert Kiyosaki, author of the viral book Rich Dad Poor Dad, explains how anyone can move to the lucrative side of the Cashflow Quadrant and flourish financially.
Real estate can be a great addition to an investment portfolio. But as with any investment, it has to be the right buy. This spreadsheet helps analyze multifamily properties via income, expenses, and debt service.
Need to compare real estate investment opportunities? Use the Residential ProForma spreadsheet to quickly identify if a real estate investment opportunity will be profitable. The proforma shows a ten-year financial outlook, adjusted for inflation, and lets users experiment with different scenarios. The spreadsheet comes with a detailed proforma, amortization schedule, and charts that track investment metrics. Quickly view the cumulative profit of a property over the next ten years, along with the present value and other key metrics adjusted for inflation and rent increases. The spreadsheet lets users conduct detailed scenario plans and make informed investment decisions.
Simplify the process of budget creation with our Budgeting Model template. This template includes examples from multiple departments, as well as consolidated data for the company.
Need better tools to fix a failed business or start a new one? Save hours of work with all the tools to track future revenues and expenses. This business plan template includes tools like a balance sheet with a ten-year financial outlook split into quarters and adjusted for inflation and rental increases. It also has a proforma income statement and provides a robust revenue tracking system based on the lifetime value, lifetime period, and cost of acquisition of a subscriber or SaaS product customer. Additionally, it includes a charts dashboard that visualizes all the predicted outcomes.