Commercial industry classification systems include:
Various governmental agencies use a number of classification systems to facilitate the comparison of data over time and among countries that use the same system. These systems include:
The structures of these systems are very similar. The limitation of current classification systems is that the narrowest classification unit assigned to a company generally cannot be assumed to constitute its peer group for the purpose of detailed fundamental comparisons or valuation.
Peer Group Analysis
This is the practice of comparing a firm's results to those of similar firms.
Commercial industry classification systems often provide a starting point for constructing a peer group. Start with companies in the same industry, review the subject company and its competitors' annual reports, and confirm that each comparable company's primary business activity is similar to that of the subject company. Useful questions to ask are:
|johntan1979: NACE = Nomenclature statistique des Activités économiques dans la Communauté Européenne [French]|
|jonan203: lol, i was wondering how they got NACE from SCEAEC|
|Shaan23: John1979 shouldnt have to write this exam to pass. He should write the exam to administer it.|
|farhan92: but he won't be able to provide the answers to the questions or he would be violating the standards? Anyone care to hazard a guess as to which standard would be violated?|