Showing posts with label sensitivity. Show all posts
Showing posts with label sensitivity. Show all posts

Tuesday, August 24, 2010

Gross margin key for EPS estimate

Duh! Ok, maybe some didn't know this. Anyway, I've done some sensitivity analysis on my model by changing one variable at a time by 10%, and looking at the resulting percentage change in EPS.
First, I simply adjusted the variable by 10% and froze all the other variables, noted the EPS change, and moved on to adjust the next variable (resetting the previous one to how it was originally). Here's a couple of charts for that (click to enlarge):