How do ratios differ by types of equity or industries? | Alpha Quadrant by The Fifth Person

Questions › Category: Financials Quadrant › How do ratios differ by types of equity or industries?

Terence Leong asked 1 month ago

Hi fifth person team, thanks for the material and webinars, I've benefited and am still digesting. What I would like to know, if the ratios and percentages that you've shared/ recommended in the online material e.g. CAGR, net profit margin and all the other etc, do they apply across various 'equity types'?
e.g. would these be different for REITs compared to individual companies? I had previously heard on various youtube/podcast content, that some of these ratios might also different by sector / industry types - I could have remembered wrongly.
Thus, if you can shed some light on this, that would be helpful, thanks!

1 Answers

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Victor Chng Staff answered 1 month ago

Hi Terence, The method taught in AQ can be applied to most stocks across the market. However, some sectors require industry-specific valuation metrics and ratios. Examples include REITs, banks, and insurance companies.