Especially with the evaluation of non-listed (medium-sized) companies, the following problems and significant restrictions pertaining to the applicability of the CAPM must be taken into account when determining cost of capital. 1. Homogeneity of expectations and planning consistency. Given the...

A cash flow's value depends on its (1) expected amount, (2) risk and (3) time of occurrence. This applies especially to uncertain payments that are generated by a company for its stake-holders. However, a cash flow's risk is not adequately considered when it comes to valuation by the traditional...

Based on risk-value models we introduce a multi-period approach to the valuation of streams of risky cash flows. The valuation is based on the (expected) value of the output's or input's magnitude and the risk of the output cash flow, as captured by a risk measure. We derive three formulae for...