Feedback Wanted on New Model for Small Firm Risk

Business Valuation UpdateVol. 29 No. 4
April 2023
company-specific risk
cost of capital, risk analysis, company-specific risk premium (CSRP)


A variation of the multiattribute utility model (MUM) used along with Monte Carlo simulation forms the basis of a new model for estimating a company-specific risk premium (CSRP) for small, closely held businesses. Excel templates are available from the model’s developer, David Goodman (Jesson, Oslin & Associates), and feedback is welcome.