What WACC changes in a DCF
WACC affects every forecast cash-flow year and the terminal value. That makes it one of the largest assumptions in a DCF model, especially for companies where long-term free cash flow drives most of the value.
Why cost of capital differs by company
A company with steadier cash flows, lower leverage, and lower perceived business risk can justify a different discount rate than a more volatile business. Sector, beta, debt mix, and interest-rate inputs all matter.
How to read the sensitivity grid
The base case is only one point in a range. The sensitivity grid shows how value changes when WACC and terminal growth move, which helps keep the target price from looking more precise than it is.