NVDA's Wild Ride!

For anyone following NVDA today, it was a WILD ride to end the day. In one hour - $140 billion of value was erased. The stock dropped from $201.30 at 3pm ET to close at $195.21 at 4pm.

It's a reminder that we live in a world where one earnings call can = +/- $100B swing.

So this is your reminder: Building a model without sensitivities is setting yourself up for failure. DCFs are partially about predicting the future, but more about surviving reality.

When building your model, don't forget to build in some scenarios and data tables (Alt A W T for Data >> What If Analysis >> Data Tables):
📉 Test the multiples
🧮 Sensitize those margins
💹 Build in some revenue growth fluctuations

Remember - sensitivities are a key piece of any analysis. You won't be able to predict everything, but it'll help to see some of the problems coming (before they become problems)