Gross Mendelsohn

SEPTEMBER 13, 2022

Understanding risk factors is essential in determining how a business will be valued. Let’s consider what your business-owning clients need to know about company-specific risks and how they come into play when it’s time for a business valuation.

Specific Risk 76

Specific Risk Risk Premium Business Valuation 76

Equilest

JULY 10, 2023

Market volatility, regulatory changes, interest rate fluctuations, tenant turnover, and project-specific risks are examples of factors that can impact a company's value. Assessing and quantifying these risks helps determine an appropriate discount rate or risk premium when calculating the company's value.

Business Valuation 40

Business Valuation Asset-based Approach Risk Premium Price to Earnings 40

Andrew Stolz

AUGUST 5, 2020

If an investor moves money from the risk-free asset into the stock market, they should expect to earn a return in excess of the risk-free rate, what is called an equity risk premium. Unsystematic risks are risks specific to a particular stock, which is why they are also called, company-specific risk.

Risk-free Rate 52

Risk-free Rate Beta Weighted Average Cost of Capital Risk Premium 52

Chris Mercer

MARCH 7, 2024

Procedural Guidelines (PG) are designed to provide more detailed guidance for consideration by business appraisers than found in the base standards themselves. Items on the list may or may not be applicable in specific valuation situations. Appraisers sometimes think that it is not possible to estimate holding period premiums.

Dividends 52

Dividends Appraisal Terminal Value Marketability 52