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  • January 27, 2023
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Pure Play Firm

A firm that has only one business line or product, and its value (or value of its stocks) solely depends on the single product or service. An example of pure play firms are R&D firms (such as a small biotechnology firm that is developing specific types of therapies). Analysts usually select the firm or firms that have a single line of business or product helps estimating the market risk of a similar project under consideration.


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