Competitor Analysis

Not every possible case will be covered: some questions, such as those on competitive positions, main competitor metrics, estimates or percentages, you will need to work on independently.

List of questions

Competitors

• Identify the main competitors

• Competitive positions

  • Which company is the sector leader?
  • Trend / leadership?

• Competitor threats: is there a possibility of sector disruption?

• Calculate main competitor metrics (revenue, margins, profit, ROIC/ROE, debt ratio, market share)

• Calculate main sector and competitor valuation multiples

Company competitive advantage

• Does the company have any special intangible asset?

  • Brand power, patent or regulatory license

• Market power (oligopoly, duopoly)

• Switching costs for the company’s products/services?

• Does the company have a network effect?

• Is the company the lowest-cost producer/operator?

NOTE: The cheapest company is not always the best investment.