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):

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)