Session 14: Equity Analysis and Valuation Reading 59: Introduction to Industry and Company Analysis
LOS a: Explain the uses of industry analysis and the relation of industry analysis to company analysis.
Industry analysis is most likely to provide an analyst with insight about a company’s:
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B) |
financial performance. | |
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Industry analysis provides a framework for an analyst to understand a firm in relation to its competitive environment, which determines how much pricing power a firm has. Competitive strategy and financial performance are aspects of company analysis. |