The art of Relative benchmarking

Peer to Peer comparison, Relative benchmarking, Competitive intensity - multiple names to this, but the idea is simple and easy to compare

Photo by Ümit Yıldırım on Unsplash

Imagine you come across an industry that has massive tailwinds.

It is a great proxy on manufacturing, a quasi-derivative on real estate and is growing at 15-20% at an industry level.

Now within the industry some players have grown at 45-55%+ while someone has grown 20%

People who have grown at high double digit trade at 40-50x PE, whereas the 20% growth company trades at 20 PE

Will there be valuation catch-up?

Or would you look at it given the industry is growing at 15-20% level and the Company has mirrored that growth.

You see frameworks like this help you in triangulating a great thesis - whether this is something that will help you spot a great accelerating company or someone that may remain cheap for the longest time.

The point is very simple.

Everything has to be seen at from different perspectives.

While something might seem half empty, something might be half full.

But the moment you add 3-4 dimensions, your confidence in the name can go up significantly.

We use these frameworks when we dive deep into growth inflectors.

We spent a lot of time doing this for Q1 and as we speak we are at it currently to create the output for Q2.

You need to put in time, energy and effort to make sure where is the puck moving and how is the growth inflecting.

With this framework in mind, from July of this year onwards, we have started thoughtfully curating one webinar every month.

These sessions take a lot of time, but the 2 hours give it justice to make sure they deliver disproportionate value to you.

We just rolled out relevant updates for attendees of our AMC Deep Dive and AI Value Chain deep dive in the last week.

This brings us to the biggest webinar we are planning to host this November.

In fact, taking the feedback from you guys we are also continuously incorporating new changes. Almost 25+ of you filled the feedback form, in case you have 45 seconds, please fill the survey here.

Growth Titans of Q2 is here

You see, in the last session that we hosted, we managed to cover 12 sectors and more than 50+ companies to identify outliers. You can read more details about this session here.

We are now ready to host the second edition of this webinar to uncover companies that are:

1. Continuing their growth momentum from Q1

2. Showing early signs of inflection going into Q3 in Q2

You can register for the session below. We are also making a few changes this time:

1. The webinar will be hosted on Zoom (there was feedback around having better audio and video quality, so we are migrating to Zoom)

2. We are also providing timely updates for changes that have occurred post the session

I will see you soon in this month’s detailed deep dive.