When a company is not diverse, their main products and services have a very large impact on their business. If something negative happens to one of those products or services, the whole business might have trouble. Not diverse business have more risk than diverse businesses. Risk lowers expected future income and decreases the value of a company. … "Not Diversified" has a significant impact, so an analyst should put more weight into it. This statements will have a short-term negative impact on this entity, which subtracts from its value. This statement will lead to a decrease in profits.