DCF Sensitivity Usage: Accuracy Benchmarks (2026)

    2026-01-21
    Technical
    Research
    Data
    • 1 min read

    Aggregated data shows how often candidates use DCF sensitivities and how it impacts accuracy, plus a simple sensitivity checklist for interviews and cases.

    What this dataset is

    Benchmarks below are based on anonymized, aggregated DCF practice attempts and answer reviews. Use them as directional guidance.

    Sample and method

    • n=18,640 DCF walkthrough attempts
    • Accuracy scored on steps, math logic, and assumptions
    • Sensitivity usage tracked as none, one-way, or two-way

    Sensitivity usage vs accuracy

    Sensitivity usageAccuracy rateCommon miss
    None49%Terminal value mismatch
    One-way (WACC or g)57%Inconsistent assumptions
    Two-way (WACC x g)63%Bridge errors to equity value

    Sensitivity checklist

    • State a base case range for WACC and terminal growth
    • Check value per share at two extremes
    • Explain which driver matters most and why

    Related: Walk Me Through a DCF and SBC in DCF.

    External references: NYU Stern valuation resources and CFA Institute programs.