The Power of Pricing Power

Companies with strong pricing power are characterized by their ability to sustain and grow revenue and profit levels even when demand stagnates or even declines. The ability to successfully build and maintain pricing power advantages over competitors are strong indications for a superior product, strong management and governance or in other words, a high-quality company across multiple, if not all, important dimensions. Finally, pricing power is a great differentiator for selecting stocks. Unlike many other financial metrics, that are dependent on the current market environment, pricing power is universally desirable across all economic circumstances – especially in times of high inflation.

What is Pricing Power?

Watch Sebastian Alber from our Product Development team discuss pricing power with our Head of Research Konrad Sippel in this short video.

Or read the full interview  here.



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