The Specific Risk Dilemma—Is It in the Eye of the Beholder?

Business Valuation Update
Business Valuation Australia
July 16, 2014
Michael Potter
Daniel Nott


How do you quantify company-specific risk in a discounted cash flow valuation? More specifically, how do you reflect the risk of anticipated new legislation or the possibility of delay in a new company project? In our experience, it is an important valuation consideration and is often something that a valuer has considerable difficulty in applying his or her judgement to assess.