Company Specific Risk

The Company Specific Risk worksheet calculates the company specific risk premium for the Income Approach valuation methods and for the Fundamental Discount that can be applied to the Analyst Research Data method. The blue text labels designating the risk factors can be overwritten. Enter the premiums for the risk factors in the white input cells.

COEE Company Specific Risk Premium

Since the Capitalization of Excess Earnings (COEE) Method only capitalizes intangible assets, it has a higher company specific risk than the other Income Approach methods, which capitalize both tangible and intangible assets.

Display the COEE Input Rows

To show or hide the input rows for the COEE additional risk premium, click on the Expand/Condense for COEE button in the Desktop Toolbar.

Enter the COEE Risk Premium

With the COEE input rows displayed, enter the additional risk premium for the COEE method in the last white input cell on the Company Specific Risk worksheet.