Chapter 7 · 6 of 100 marks · workbook pages 130-144
Company Analysis: Business and Governance
The qualitative half of company analysis: business models, pricing power, competitive advantage, SWOT, management and governance, promoter holdings, business risks, credit ratings, ESG and sources.
Focus
- Business model
- Pricing power
- Competitive advantage
- SWOT
- Management quality
- Governance
- ESG
- Sources
Must know
- Qualitative company analysis tests whether the business can sustain growth, margins, and capital allocation.
- Pricing power, brand, scale, cost advantage, switching cost, distribution, and regulation can support a moat.
- Governance review covers board quality, promoter holding, related-party transactions, disclosures, and minority shareholder treatment.
Traps
- High promoter holding is not automatically good; governance quality and alignment matter.
- SWOT starts with a clear business and industry context.