Company-Specific Risk: Incorporating and Assessing Cash Flow Assumptions
Identify and assess company‑specific risk when developing discount rates. Learn best practices for incorporating CSRP using quantitative support, PFI analysis, and valuation‑focused case examples.
Format
Webcast
Date
Nov 17, 2026
NASBA Field of Study
Specialized Knowledge
Level
Overview
CPE Credits
1.5
Instructor
Roger Grabowski, Anthony Pumphrey
Availability
3 months
Product Number
WC5263476
This program provides valuation professionals with a structured approach to evaluating company‑specific risk in both fair-market-value and fair-value engagements.
Attend for:
Identifying relevant company‑specific risks:
Participants will identify key financial, operational, and industry‑related risk factors that influence prospective financial information (PFI) and valuation conclusions. The program explains how these risks affect expected future performance and valuation assumptions.
Aligning cash flows and discount rates:
The session distinguishes between risks captured in the modified capital asset pricing model (MCAPM) and risks more appropriately addressed through adjustments to PFI or a company‑specific risk premium (CSRP). Attendees will also distinguish between expected and conditional cash flows and the discount rates applicable to each.
Applying quantitative best practices:
Given the ongoing debate surrounding CSRP, the webcast emphasizes best practices supported by valuation literature, including the use of quantitative comparisons to guideline companies when developing discount rate components.
Learning from real‑world valuation outcomes:
Select court decisions and transactions are examined in which the measurement of PFI and CSRP played a meaningful role in determining value.
Company‑specific risk remains one of the most challenging and scrutinized components of discount rate development in business valuation and financial reporting. This webcast presents a great opportunity to upgrade your knowledge.
Key Topics
- Company-specific risk identification
- CSRP and discount rate development
- MCAPM versus PFI adjustments
- Expected vs. conditional cash flows
- Court cases and valuation applications
Learning Outcomes
- Identify key components of company-specific risk and how they relate to the assessment of PFI and discount rates.
- Recognize financial, operational, and industry-related factors that may impact future performance and contribute to company-specific risks.
- Distinguish between risks captured in the MCAPM and risks that are more appropriately captured through adjustments to the PFI and a CSRP.
- Distinguish between the development of expected and conditional cash flows and the discount rates applicable to each.
- Recognize court decisions and transactions where PFI and CSRP measurement played a meaningful role in the determination of value.
Who Will Benefit
Valuation professionals, forensic and financial analysts, CPAs, and other practitioners involved in business valuation, fair value measurements, and financial reporting who develop or evaluate discount rates and prospective financial information.
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