Posted by Bob on April 12, 19100 at 17:27:48:
Although the classification of *industries* is dynamic and somewhat arbitrary, companies do have identifiable competitors which collectively can be referred to as a relevant industry for valuation purposes.
There are three ready sources of fundatmental information about industry-specific factors that impact the valuation of a company.
First, brokerage house research reports are useful, not for their recommendations, but rather for their analyses and idenfitication of the main factors affecting the future prospects of the industry.
Second, industry trade magazines, which are available either by subscription or at a library. Most established industries have one or two leading trade magazines that are well recognized as sources of reliable timely insider views. This is a source for the big buzz on the informal industry grapevine.
Third, for the U.S., competitor companys' Form 10-K Annual Reports to Shareholders filed at the U.S. SEC, in the Management Discussion and Analysis section. The FreeEDGAR online service is an excellent place to find these financial documents for fully-reporting companies.
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