Sensitivity analysis

Sensitivity analysis and stress testing.

The refinement of a financial valuation or decision making model. Sensitivity analysis quantifies the degree of change in a valuation or other assessment, to changes in one or more of the inputs.

It can also be used to identify the break even point or points, at which a financial decision would change.

An important type of sensitivity analysis is stress testing.

See also

• Back test
• Break even point
• Financial model
• Model
• Quantitative techniques
• Reverse stress test
• Scenario analysis
• Sensitivity
• Stress test