Sector and Industry Data
Getting a clear picture of the fundamentals for a group of companies is no simple task. But the fundamentals of an industry can have a serious impact on investing and business decisions.
Understand Industry Economics
Each industry has its own unique competitive structure. That structure leads to observable patterns. Some industries are high margin, and some are low. Some are capital intensive and some are not. Understanding those economics is crucial for good investing and business decisions.
With our industry aggregates, you can compare sectors or industries just as you would compare companies within an industry. To a prepared mind, the numbers tell a clear story.
Using Sound Methodology
Building an industry aggregate is hard work. In many ad-hoc industry analyses, one tiny company with an extreme number can throw off the whole average.*
To properly reflect the economics of the whole industry, YCharts:
- Removes duplicate issues for single companies - preventing double-counting
- Treats the whole industry as if it merged into one conglomerate - so the largest companies influence the industry aggregates more than the smallest
- Deals with incomplete data - so companies are only included in an industry calculation if they have all of the data required to be included**
While a full industry analysis performed by an analyst or consultant can take weeks to complete, our aggregate industry calculations are updated weekly. All use the most recently reported numbers in our system, and therefore provide an up-to-date snapshot of fundamentals even in times of market turmoil.
YCharts’ industry data is available with a YCharts Analyst subscription. Learn more about the data and see it in action, please contact a sales representative today.
* Try averaging 50 companies’ Price to Earnings Ratios when one small company’s is 10,000. It happens.
** If your goal is perfection, you will still need to hire a consultant or analyst to dig through the financial statements of micro-cap companies to ensure 100% complete data. But if you are searching for a highly complete picture at a reasonable price on a quick timeline, YCharts Industry data will be a perfect fit.