Products

Looking at what a company provides as its core business is a great place to start when examining company valuation.

Companies selling directly to consumers are called business-to-consumer businesses, or B2C. An example of B2C is your local grocery store selling produce to its patrons. You may want to find companies offering products and services that not only have strong marketability but also have a strong position in consumer markets. Companies providing everyday necessities such as food, energy, and housing, are often much sounder investments than companies that serve a very limited part of society.

Some companies provide their products and services primarily to other businesses. These are called business-to-business companies, or B2B.

Most B2C products sold directly to consumers, such as computers, can also be sold to businesses, but not all B2B products are sold to consumers. B2B products are generally the “in-between” parts of the finished products. For example, companies that supply smartphone components can sell camera sensors to smartphone manufacturers, but the finished product, a phone, is eventually being sold to a consumer.