Equity Investments II

Reading 40. Introduction to Industry and Company Analysis

Learning Outcome Statements

a. explain uses of industry analysis and the relation of industry analysis to company analysis;

CFA Curriculum, 2020, Volume 5

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Subject 1. Uses of Industry Analysis

Company analysis and industry analysis are closely interrelated. Company and industry analysis together can provide insight into sources of industry revenue growth and competitors' market shares and thus the future of an individual company's top-line growth and bottom-line profitability.

Industry analysis is useful for:

  • Understanding a company's business and business environment.
  • Identifying active equity investment opportunities.
  • Formulating an industry or sector rotation strategy.
  • Portfolio performance attribution.

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yearidsira

Vigilante

farhan92

@yearidsira whats Arrow got to do with it?

RTDyer

@farhan92 you have failed this city