Abstract

The purpose of the article is to determine which method of company specific risk premium calculation for agricultural companies gives the most correct result in the process of a business valuation. We conduct a study on agricultural holdings valuation methodology and this article builds on our prior study to improve the methodology and justify the appropriate method of Company Specific Risk Premium calculation for agricultural business valuation because properly performed business valuation procedure increases the company's value, its investment attractiveness. For our study, we select large agricultural holdings, leading daily stock trading, from top agricultural producing countries in different parts of the world: Brazil, USA, Ukraine and Australia. Costa Group Holding (CGC) is selected for this article as a company meeting all of the above-mentioned requirements. Compared with the recent researches, the main contributions of the paper are summarized as follows: justified and proved by calculations the correct methodology for calculating of Company Specific Risk Premium in agricultural business valuation for investment purposes. Keywords: Company Specific Risk Premium, Business Valuation, Investment, Risk Factors, Specific Risks

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