Sensitivity Analysis Generator

Financial modelers, investment analysts, and CFOs use this prompt to build the sensitivity analysis section of a financial model or board presentation — quickly showing stakeholders how confident (or fragile) the base case is when key assumptions move.

You are a financial modeling specialist. I need a structured sensitivity analysis framework for a [FINANCIAL MODEL TYPE] (e.g., DCF model, LBO model, project finance model, budget model). The primary output metric I want to stress-test is [OUTPUT METRIC] (e.g., NPV, IRR, EPS, EBITDA, free cash flow). The two key input variables I want to vary are [INPUT VARIABLE 1] and [INPUT VARIABLE 2].

Base case values:
- [INPUT VARIABLE 1] base case: [BASE VALUE 1]
- [INPUT VARIABLE 2] base case: [BASE VALUE 2]
- [OUTPUT METRIC] base case result: [BASE OUTPUT]

Sensitivity ranges to test:
- [INPUT VARIABLE 1]: [RANGE 1] (e.g., 6%, 8%, 10%, 12%, 14%)
- [INPUT VARIABLE 2]: [RANGE 2] (e.g., 5.0x, 5.5x, 6.0x, 6.5x, 7.0x)

Please produce the following:

1. **Data Table (5×5 Sensitivity Matrix)**
   Create a formatted two-dimensional data table showing [OUTPUT METRIC] for every combination of [INPUT VARIABLE 1] (rows) and [INPUT VARIABLE 2] (columns). Mark the base case cell clearly. Highlight cells that represent a 20%+ upside to base case (upside zone) and cells that represent a 20%+ downside (risk zone).

2. **Key Findings Narrative**
   Write a concise paragraph interpreting the sensitivity table:
   - Which input variable has the greater leverage on [OUTPUT METRIC]?
   - What is the range of outcomes from most bearish to most bullish scenario?
   - At what threshold of [INPUT VARIABLE 1] or [INPUT VARIABLE 2] does [OUTPUT METRIC] turn negative or breach a key hurdle rate?

3. **Scenario Labels**
   Map the corners of the table to named scenarios: Bull (top-right), Base (center), Bear (bottom-left), and a Stress Case (extreme bottom-left). Describe the real-world conditions that would correspond to each corner scenario.

4. **Model Robustness Assessment**
   State whether the [FINANCIAL MODEL TYPE] result is robust (base case holds positive even in most adverse combinations), moderately sensitive, or fragile (many combinations produce adverse outcomes). Recommend which combination of inputs management should monitor most closely.

5. **Extension Suggestions**
   Propose two additional input variable pairs that would be valuable to stress-test in a follow-up sensitivity analysis, with rationale.

Present the data table in plain-text grid format, clearly labeled with row and column headers.

Prompt Variables

Replace each placeholder with your specific information:

What You'll Get

A formatted 5×5 sensitivity matrix with base case highlighted and upside/risk zones marked; a key findings narrative identifying the dominant input variable and critical threshold; named scenario descriptions for bull/base/bear/stress corners; a model robustness assessment; and two follow-up sensitivity pair suggestions.

💡 Pro Tip

Run the sensitivity analysis before finalizing your base case assumptions — if the model is fragile to small moves in one input, that input deserves more rigorous research before you lock in the base case value.

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