Company-Specific Risk Premium is one of the risk components of Ibbotson build-up method of risk computation. The other risk components include the risk-free rate and the equity risk premium. The company-specific risk premium is therefore one of the main components of the total rate of return expectations of an investor to take a greater risk of investing in a small private business entity. Such expected returns should be over and above the risk of investing in the stocks of publicly-listed small businesses else the investor will not take the risk. The company-specific risk premium is unique to individual businesses and varies across small private businesses to compensate for the size risk of small firms over publicly held comparators. Because of the absence of data to support the analysis of company-specific risk premiums which is an unsystematic risk associated with small business, the computation of such risks depends on the experience, analytical skill, and professional judgment of the valuator. The key elements which feed into the estimation of the company-specific risk premiums are industry risk, financial risk, depth of management, level of diversification, competition risk, access to capital, and risk of achieving forecasts.