video1.0<iframe src="https://www.loom.com/embed/f7756f10fdeb4635b928e3b8130cb6ce" frameborder="0" width="1920" height="1440" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>14401920Loomhttps://www.loom.com14401920https://cdn.loom.com/sessions/thumbnails/f7756f10fdeb4635b928e3b8130cb6ce-9d4006b5c7220a18.gif644.032Risk is an important but difficult part of the business valuation process. We look the capitalisation and discount rates and how they're used in the income approaches of Capitalisation of Earnings and DCF methods. We explain how investors have expected rates of return while accepting the corresponding risk. We outline the Build-Up method and explain each of its parts including the Company Specific Risk Premium.