Average metrics for an industry
I'm a sophomore learning about equity research by doing a project given to me by another WSO user.
Anyway, to cut a long story short, I have my metrics, all calculated and I (finally) understand them. Do you know how/where I can compare my metrics to almost a 'cross section' of data on the indsutry? I want to essentially know the average/good level of debt-equity ratio for the INDUSTRIALS industry.
How do I find such information? Or does such a general thing not exist since there are too many firms?
Hopefully that answers your question.
Thank you very much sabian, I don't have access so I will compute the comparison metrics myself. Thank you, I should learn to do it this way.
May I ask one more question, what do you mean by your third bullet opint, by an 'extra metric'?
I.e. something that really distinguishes it? A common thing among the companies analysed?
Thanks
You sure you don't have access? I have access to FactSet, CapIQ, Compustat, Bloomberg Terminal, etc. through my school.
Some companies have different additional metrics (beyond EBITDA, EV, D/E ratio, etc) to compare across an industry. Example: In retail, it's same-store sales. Depending on what sub-industry your assigned company is in, figure what other methods of comparison may be used to determine it's performance compares to others.
I'm of the opinion that as someone trying to learn, it would serve you best to do as much of this as possible, and then cross-reference with someone else. Have a finance-knowledgeable person check your work.
Though this takes more time, the best way to learn is to keep messing up in the right direction. And as a sophomore, you should have plenty of time.
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