Sensitivity Analysis Explained: Definitions, Formulas and Examples

Sensitivity analysis is an indispensable tool utilized in corporate finance and business analysis to comprehend how the variability in key input variables influences the performance of a business. By methodically adjusting the inputs and observing the ensuing effect on outputs, analysts can discern which variables have the most profound impact on the bottom line. This

By |2023-11-09T13:12:23+00:00November 8th, 2023|Financial Modeling, Uncategorized|Comments Off on Sensitivity Analysis Explained: Definitions, Formulas and Examples

Basis Points (BPS) Explained: Definitions and Examples

Basis points (BPS) is the common term for 1/100th of 1 percent or 0.01%.  This unit might not seem worth naming, but in bond markets for example, this is the unit for measuring daily price movements and credit spreads – i.e. the interest rate premium charged to a company because it is a weaker credit

By |2023-10-23T16:57:14+00:00October 23rd, 2023|Investing, Uncategorized|Comments Off on Basis Points (BPS) Explained: Definitions and Examples

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