Quantifying Company-Specific Risk: A New, Empirical Framework With Practical Applications

Business Valuation UpdateVol. 13 No. 2
February 2007
Peter J. Butler, CFA, ASA
Keith A. Pinkerton, CFA, ASA, MBA

Summary

In this article, the authors have refined their earlier work1 by providing a detailed example of how to select a company-specific risk premium (CSRP) for a privately held company using benchmark CSRPs derived from guideline publicly traded companies.