WikiWealth

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 Industry" has a significant impact, so an analyst should put more weight into it. This qualitative factor will lead to an increase in costs. "Volatile Industry" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.