The WACC along with long term growth rate is hugely important in a DCF valuation If you change your WACC or long term growth rate by a small amount, it can have a very large impact upon the end valuation of your company Therefore we need to be very careful about the WACC and the long term growth rate figures that we use It can therefore be useful for us to run sensitivity analysis I.e. change the WACC and the long term growth rate a little bit and see the impact that it has A data table or sensitivity table, allows you to get a sense of the impact by changing the WACC and long term growth So down the left hand side of the table we can see the WACC ranges from 8.1% to 8.9% And along the top in blue, you can see the long term growth rate ranges from 2.4% down to 1.6% What we want this table to do, is we want it to put combinations of those two figures into our model and then spit out a new share price Let's do the first one! We take the 8.1% WACC, put it into the model. And we put the long term growth rate of 2.4%, put it into the model We see what the share price is and then we record it here 16.03 Now that would take an awful long time to put all of these combinations in manually and then write them down But you can use the data table capability in excel to do this for you What you do, you set up your data table like this: column on the left and then a row at the top You then tell the data table which two cells within the model are your WACC and your long term growth rate You then run your data table and then all of a sudden all of our share prices spit out We can see that the share prices here range from the bottom right hand corner (when you've got a low growth and high WACC) The share price is 10.62 And it ranges all the way up to 16.03 in the top left hand corner when you've got low WACC and very high growth So there's a big difference in the share price there and your data table has given you an idea of how big that difference will be Making these small changes in the WACC and long term growth rate