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Question of the Week: Level 2 - Equity Valuation

An analyst evaluates SD Cement Inc., a company operating in an emerging economy.  The analyst observes the following characteristics:

  • Low substitution costs
  • A fragmented industry
  • Large number of suppliers
  • Large customer base
  • Significant barriers to entry

Which of the above characteristics is least likely to negatively affect the pricing power for SD Cement Inc.?

Question of the Week: Level 2 - Equity Valuation 4 votes

A. Low substitution costs.
0% 0 votes
B. A fragmented industry.
0% 0 votes
C. Significant barriers to entry.
100% 4 votes

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