You can reduce company-specific risk
and increase your chances of participating in any broad market gains by buying multiple stocks with various attributes.
Adjustments can reflect many relevant factors, such as the general riskiness of the target metric, leverage, term, size premium, and company-specific risk
. In the bottom-up approach, [beta] is the target metric adjusted for term, size, company-specific risk
, and other relevant valuation factors.
Most privately held companies have an opportunity to double their value over three to five years by adopting a disciplined, methodical approach to reducing company-specific risk
while increasing quality.
judges approve, company-specific risk
premia as large as 10%.
The investor is exposed to company-specific risk
for each position in the concentrated portfolio, but what if that idiosyncratic risk can be significantly diminished?
When one examines the riskiest companies as denoted by the KDR, there is the presence of idiosyncratic risk or company-specific risk
. Systematic risk evidenced by the correlation of the macroeconomic drivers among these firms is also in play.
matrices need to be drawn up on the basis of experience, fundamentals and hindsight following evaluation of available market analysis reports which are, however, uncertain." Respondents to the survey felt that the level of risk posed by most of the factors which impacted their business would remain largely unchanged over the next 12 months, with the exception of tonnage supply and competition, which were perceived to have the potential for increased risk.
In addition, SINEK is facing the increasing company-specific risk
of a developing debt profile, with limited visibility of a targeted debt structure and the lack of direct government guarantees for any of the debt.
We do not incorporate any potential new acquisitions into our model, but we believe it is prudent to account for this risk by increasing our company-specific risk
In addition, we expect to see the growth of web-based benchmarking programs that compare company-specific risk
programs to best-in-class practices, complete with recommended actions to achieve best-in-class status.
The company-specific risk
premium is added when the company is more risky in the remaining market.
The enterprise equity discount (yield) rate includes three elements: (1) a market-derived, risk-free rate of return; (2) a general (equity) risk premium derived from the public equity markets; and (3) a company-specific risk