sector-overview

# Sector Overview

## Workflow

### Step 1: Define Scope

- **Sector / subsector**: What industry and how narrowly defined?
- **Purpose**: Client report, internal research, pitch material, idea generation
- **Depth**: High-level overview (5-10 pages) or deep dive (20-30 pages)
- **Angle**: Neutral landscape vs. thematic thesis (e.g., "AI infrastructure buildout")
- **Universe**: Public companies only, or include private?

### Step 2: Market Overview

**Market Size & Growth**
- Total addressable market (TAM) with source
- Historical growth rate (5-year CAGR)
- Forecast growth rate and key assumptions
- Market segmentation (by product, geography, end market, customer type)

**Industry Structure**
- Fragmented vs. consolidated — top 5 market share
- Value chain map — where does value accrue?
- Business model types (subscription, transaction, licensing, services)
- Barriers to entry (capital, regulatory, technical, network effects)

**Key Trends & Drivers**
- Secular tailwinds (3-5 major trends)
- Headwinds and risks
- Technology disruption vectors
- Regulatory developments
- M&A activity and consolidation trends

### Step 3: Competitive Landscape

**Company Profiles** (for top 5-10 players):

| Company | Revenue | Growth | EBITDA Margin | Market Share | Key Differentiator |
|---------|---------|--------|--------------|-------------|-------------------|
| | | | | | |

For each company, brief profile:
- Business description (2-3 sentences)
- Strategic positioning and moat
- Recent developments (earnings, M&A, product launches)
- Valuation snapshot (P/E, EV/EBITDA, EV/Revenue)

**Competitive Dynamics**
- How do companies compete? (price, product, service, distribution)
- Who is gaining/losing share and why?
- Disruption risk from new entrants or adjacent players

### Step 4: Valuation Context

- Sector trading multiples (current and historical range)
- Premium/discount drivers (growth, margins, market position)
- Recent M&A transaction multiples
- How does the sector compare to the broader market?

### Step 5: Investment Implications

- Where are the best risk/reward opportunities?
- What thematic bets can be expressed through this sector?
- Key debates in the sector (bull vs. bear arguments)
- Catalysts that could change the sector narrative

### Step 6: Output

- Word document or PowerPoint with:
  - Market overview and sizing
  - Competitive landscape map
  - Company comparison table
  - Valuation summary
  - Key charts: market growth, share trends, valuation history
- Excel appendix with detailed company data

## Important Notes

- Source all market size data — cite the research firm or methodology
- Distinguish between TAM hype and realistic addressable market
- Sector overviews age fast — note the date and flag data that may be stale
- Charts are essential — market size waterfall, competitive positioning matrix, valuation scatter plot
- If for a client, tailor the "so what" to their specific situation (M&A target identification, competitive positioning, market entry)