Final answer:
The incorrect statement about industry analysis is c, which inaccurately suggests that relative valuation involves comparing the industry multiple to the economic multiple. In practice, relative valuation usually compares a company's financial ratios to those of its industry peers.
Step-by-step explanation:
Statement c, "relative valuation often involves comparing the industry multiple to the economic multiple," is not true about industry analysis. In industry analysis, relative valuation typically involves comparing the metrics of a company to that of its peers within the same industry, rather than to a broad economic multiple. This comparison is relevant because companies in the same industry are generally subject to similar business conditions and performance benchmarks.
It is indeed possible for industry growth rates to be vastly different from the overall market growth rates, hence statement b is true. The underlying fundamentals driving a multiple are critical to understanding not just the multiple itself but also the broader business dynamics, making statement d an accurate part of industry analysis.
Lastly, while it can be challenging to apply regression and time-series analysis in industry analysis, particularly when there are many changing factors, it is not necessarily true that it is always difficult. Therefore, statement a is too broad and absolute to be invariably accurate.