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Topic 5 – Equity
Reading 22 – Industry and Company Analysis
0:00 Introduction and Learning Outcome Statements
2:31 LOS: Compare topdown, bottomup, and hybrid approaches for developing inputs to equity valuation models
2:31 LOS: Compare “growth relative to GDP growth” and “market growth and market share” approaches to forecasting revenue
10:11 LOS: Evaluate whether economies of scale are present in an industry by analyzing operating margins and sales levels
15:19 LOS: Forecast the following costs: cost of goods sold, selling general and administrative costs, financing costs, and income taxes
22:43 LOS: Describe approaches to balance sheet modeling
27:11 LOS: Describe the relationship between return on invested capital and competitive advantage
28:17 LOS: Explain how competitive factors affect prices and costs
28:17 LOS: Judge the competitive position of a company based on Porter’s five forces analysis
29:48 LOS: Explain how to forecast industry and company sales and costs when they are subject to price inflation or deflation
34:39 LOS: Evaluate the effects of technological developments on demand, selling prices, costs, and margins
37:00 LOS: Explain considerations in the choice of an explicit forecast horizon
38:44 LOS: Explain an analyst’s choices in developing projections beyond the shortterm forecast horizon
41:10 LOS: Demonstrate the development of a salesbased pro forma company model