Getting Information on Competitive Strengths and Excess Returns

This is primarily a qualitative assessment. Reading articles on the firm and the sector in which it operates is a good starting point. Looking at the differences across firms in the sector on size, margins, working capital ratios and risk can also provide a basis for the competitive analysis. A useful comparison would be between the excess return (return on capital - cost of capital) earned by your firm and the average excess return earned by the sector. Online sources of information:

http: / / www.stern.nyu.edu/~adamodar/cfin2E/ proj ect/data. htm

Stocks and Shares Retirement Rescue

Stocks and Shares Retirement Rescue

Get All The Support And Guidance You Need To Be A Success At Investing In Stocks And Shares. This Book Is One Of The Most Valuable Resources In The World When It Comes To

Get My Free Ebook


Post a comment