Volatile industries increase the risk to company projections and valuation. When projections are difficult to forecast, it is best to keep forecast conservative, which decreases value. Volatility also decreases the ability of a company to make capital expenditure investments. … "Volatile Oil Industry" has a significant impact, so an analyst should put more weight into it. "Volatile Oil Industry" will have a long-term negative impact on this entity, which subtracts from the entity's value. "Volatile Oil Industry" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.