Industry and Competitive Analysis
Free CFA Level I lesson in Equity Investments. 14 min read, ~2,142 words.
Top-down process: define industry, classify peers, size the market, map structure, assess external forces, then value the company. Three industry classification methods: products/services (GICS, ICB, TRBC commercial; NAICS, NACE governmental), business cycle sensitivity (cyclical vs. defensive), statistical clustering. Industry life cycle: embryonic, growth, shakeout, mature, decline. Each stage has its...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- industry and competitive analysis
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