What is the relevance of a "GDP growth industry"?
I have heard this term thrown around a lot but always quite unclear on what exactly the meaning was. Is the phrase really just used to describe an industry/sector with secular tailwinds that will likely result in organic growth of the target company in question?
Also, how would you bake in the linkage between the actual projected GDP growth rate and "GDP growth industry" when financial modeling? Simplifying here, but does this mean revenue growth should be in-line with the actual projected GDP growth rate or above/under?
Yes, usually means growth in line with long term GDP growth rates.
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