what is the difference between sensitivity analysis and scenario analysis 
a sensitivity analysis is not the same as a scenario analysis assume an equity analyst wants to do a sensitivity analysis and a scenario analysis around the impact of earnings per share eps on a company s relative valuation by using the price to earnings p e multiple the sensitivity analysis is based on the variables that affect valuation which a financial model can depict using the variables price and eps for a scenario analysis an analyst determines a certain scenario such as a stock market crash or change in industry regulation that would affect the company valuation the bottom line