What Is Market Share?

Market share refers to the percentage of the total sales in any given market which are earned by one particular company. This is usually over a specified period such as one year. Market share is used to show the strength and size of a company within its industry compared to its competitors. The calculation for market share is a very simple percentage calculation:

  • ( Sales of Company / Total Industry Sales ) x 100

A common goal of companies is to increase market share and this is done, among other ways, by:

  • Loss leading, i.e. selling products at a loss in order to sell more
  • Increased awareness through advertising
  • Product improvements to make them more desirable than those of competitors

To learn more about this concept and become a master at valuation modeling, you should check out our Valuation Modeling Course. Learn more here.

Module 1: Introduction

Module 2: Valuation: The Big Picture

Module 3: Enterprise Value & Equity Value Practice

Module 4: Trading Comparables Introduction

Module 5: Trading Comps: The Setup

Module 6: Trading Comps: Spreading Nike (NKE)

Module 7: Trading Comps: Spreading Adidas (ADS.DE)

Module 8: Trading Comps: Spreading Lululemon (LULU)

Module 9: Trading Comps: Spreading Under Armour (UA)

Module 10: Trading Comps: Benchmarking and Outputs

Module 11: Precedent Transactions: Introduction

Module 12: Precedents: The Setup

Module 13: Spreading Tiffany & LVMH

Module 14: Spreading FitBit & Google

Module 15: Spreading Reebok & Adidas

Module 16: Spreading Jimmy Choo & Michael Kors

Module 17: Spreading Dickies & VF

Module 18: Valuation Wrap-Up

Module 19: Bonus: Non-GAAP Practice

Learn More Here

Related Terms

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