Frequently Asked Questions

Competitive Advantage

A Competitive Advantage is an aspect that enables a company to generate greater margins or sales and or retain more customers, than its competition.

Vuru assesses a company's competitive advantage by looking at the size and consistency of their Net Profit Margins over the past 10 years. If a company is able to consistently produce high Net Profit Margins, it implies that the company has a defensible competitive advantage that allows them to do this.

Net Profit Margin = Net Income / Revenue x 100%