Equity: Intro to Industry & Company Analysis Flashcards
Company Analysis
Analysis of an individual company
Competitive Strategy
A company’s plans for responding to the threats and opportunities presented by the external environment
Cyclical
Companies with sales and profits that regularly expand and contract with the business cycle or state of economy
Experience Curve
A curve that the direct cost per unit of good or service produced or delivered as a typical declining function of cumulative output.
Growth Cyclical
A term sometimes used to describe companies that are growing rapidly on a long-term basis but that still experience above-average fluctuation in their revenues and profits over the course of a business cycle
Income Trust
A type of equity ownership vehicle established as a trust issuing ownership share known as units
Industry
A group of companies offering similar products and/or services
Industry Analysis
The analysis of a specific branch of manufacturing, service or trade.
Life-cycle stage
The stage of the life cycle m: embryonic, growth, shakeout, mature, declining
Non-cyclical
A company whose performance is largely independent of the business cycle
Peer group
A group of companies engaged in similar business activities whose economies and valuation are influenced by closely related factors
Principal business activity
The business activity from which a company derives a majority of its revenues and/or earnings
Sector
A group of related industries
Strategic Analysis
Analysis of the competitive environment with an emphasis on the implication of the environment for corporate strategy.
Strategic Groups
Groups sharing distinct business models or catering to specific market segments in an industry
