Chapter 8: Company Analysis—Forecasting

In this section

• Industry Classification Systems
  Industry Classification Systems (CFA Level 1): Rationale Behind Classification, Major Classification Systems, and Global Industry Classification Standard (GICS). Key definitions, formulas, and exam tips.
• Porter’s Five Forces and Competitive Dynamics
  Porter’s Five Forces and Competitive Dynamics (CFA Level 1): Threat of New Entrants, Threat of Substitute Products or Services, and Bargaining Power of Buyers. Key definitions, formulas, and exam tips.
• Evaluating Industry Life Cycles and Market Share Trends
  Evaluating Industry Life Cycles and Market Share Trends (CFA Level 1): Understanding the Industry Life Cycle, Growth Stage, and Shakeout Stage. Key definitions, formulas, and exam tips.
• PESTLE Framework for External Analysis
  PESTLE Framework for External Analysis (CFA Level 1): Among the Political factors in a PESTLE analysis and When analyzing Economic factors, which indicator directly influences. Key definitions, formulas, and exam tips.
• Cross-Industry Analysis and Intermarket Linkages
  Cross-Industry Analysis and Intermarket Linkages (CFA Level 1): Understanding Cross-Industry Interactions, Upstream and Downstream Dependencies, and Global Supply Chains and Intermarket Shock Transmission. Key definitions, formulas, and exam tips.
• Quantitative Tools for Industry and Competitive Analysis
  Quantitative Tools for Industry and Competitive Analysis (CFA Level 1): Ratio Analysis, Common Usage, and Best Practices and Pitfalls. Key definitions, formulas, and exam tips.
• Use of Industry-Specific KPIs for Competitive Assessment
  Use of Industry-Specific KPIs for Competitive Assessment (CFA Level 1): Why Industry-Specific KPIs Matter, Common Industry KPIs, and Retail Industry. Key definitions, formulas, and exam tips.
• Concentration Ratios and the Herfindahl–Hirschman Index (HHI)
  Concentration Ratios and the Herfindahl–Hirschman Index (HHI) (CFA Level 1): Understanding Concentration Ratios, Herfindahl–Hirschman Index (HHI), and HHI Thresholds in Merger Review. Key definitions, formulas, and exam tips.
• Network Effects and Competitive Moats
  Network Effects and Competitive Moats (CFA Level 1): Understanding Network Effects, Direct vs. Indirect Network Effects, and Positive Feedback Loops and “Winner Takes Most”. Key definitions, formulas, and exam tips.
• Sector Rotation Strategies (Business Cycle, Style Rotation)
  Sector Rotation Strategies (Business Cycle, Style Rotation) (CFA Level 1): Identifying Economic Turns with Leading Indicators and Style Rotation: Growth vs. Value. Key definitions, formulas, and exam tips.