by Simon Cook | Oct 28, 2025 | Business Valuation, Risk
Valuation risk and return are interrelated. That is because investors expect higher returns for increased risk. Higher returns reduce value. Increased valuation risk and increased expected returns The figure below summaries the expected returns for different classes...
by Simon Cook | Sep 6, 2022 | Business Valuation, Risk
Business valuation is linked to risk. The risk investors attach to future cash flows. In private business valuation unsystematic risk is a key driver in determining value. The disadvantages of investing in a private business Compared to a hypothetical diversified...
by Simon Cook | Nov 14, 2018 | Business Valuation, Risk
Business valuation and risk. Business valuation is a function of the future expected cash flows from the business and the risk attached to those cash flows. The value of a business is the present value of future cash flows discounted back, using a discount rate, to a...
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