Last version published: 26/03/2018 10:11
Publication number: ELQ-80803-2
View all versions & Certificate
Design debt (by looking at sensitivity to macro variables)
Allows you to estimate the duration of a firm's assets and its sensitivity to other macro economic variables
Prof. Aswath Damodaran offers you this Best Practice for free!
download for free
Add to bookmarks
The objective of this model is to get the following output values, based on Firm Value or based on Operating Income:
- Slope of regression vs Interest rate change
- Duration of the firm's assets
- Cyclicality of firm's assets
- Sensitivity to Inflation
- Sensitivity to Dollar movements
It may be useful in the design of debt.