Industry Attractiveness Explorer

About the data: All metrics are computed from aggregated financials of publicly listed companies classified in each industry. Specifically, Damodaran calculates industry ratios by summing all firms’ numerators and denominators (e.g., total industry operating income divided by total industry revenue), which means larger firms contribute more to the industry figure. Profit margins and returns on investment are shown as 5-year averages (2021–2026) to smooth out short-term fluctuations; revenue growth reflects the most recent 5-year CAGR (2021–2026). In the industry detail view, “pp” stands for percentage points and indicates the difference relative to the overall market average. Historical charts show how each metric evolved over time.

Important limitations: The data cover only publicly listed companies and do not reflect the many private firms that operate in each industry. Industry classifications are based on each firm’s primary business, although many large corporations operate across multiple industries. Some industries (marked with fewer firms) may be more sensitive to individual company performance.

Profit Margin

Operating margin measures what share of revenue remains as profit after operating costs. For example, an operating margin of 10% means that for every 100 units (e.g., $, £, €) of revenue, 10 units remain as operating profit after accounting for all operating expenses. Higher margins indicate that an industry retains more of its revenue as profit.

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Industry Growth

Revenue growth is measured as the compound annual growth rate (CAGR) over the past five years, reflecting how fast industry revenues have been growing on an annualised basis. Note that high revenue growth does not necessarily mean the industry is expanding — it can also reflect rising prices (e.g., in commodity-driven industries like oil & gas or metals). Compare the historical trends to distinguish structural growth from price fluctuations or other cyclical effects.

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Return on Investment

Return on invested capital (ROIC) measures how efficiently firms turn invested money into profits. For example, an ROIC of 15% means that for every 100 units of capital invested, the industry generates 15 units in operating profit. A high ROIC signals that the industry creates substantial value relative to the capital required to operate in it.

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How to Use This Tool

Click on any industry in the bar chart, scatter plot, or data table to see detailed metrics including historical trends. The profile panel will show you how each industry compares to the market average on all three dimensions.