Pure play

Pure play refers to a company that focuses on a particular product or activity instead of various interests. Investing in a pure play can be considered as investing in a particular commodity or product of a company.

The term is ambiguous, but generally refers to firms that either specialize in a specific niche, or have little to no vertical integration. For example, a coffee shop may call itself a "pure play" restaurant, and a factory that only produces goods (not design or sell to consumers) may refer to itself as a pure play manufactory.

E-commerce companies are often referred to as pure play retailers, as they sell only through the Internet.

In finance, the "Pure play method" is an approach used to estimate the cost of equity capital of private companies, which involves examining the beta coefficient of other public and single focused companies.

Here, when estimating a private company A's equity beta coefficient, the equity beta coefficient of a public company B is needed; the latter can be calculated by regressing the return on B's stock on the return on the relevant . The following calculation is then applied to return the beta coefficient of company A.

Pure play foundries such as TSMC and GlobalFoundries are foundries who do not have any in-house design capabilities but only fabricate the Integrated Circuits (ICs) for fabless semiconductor companies such as Qualcomm, Broadcom, Xilinx, Nvidia and others. Integrate Device Manufacturer (IDM) foundries such as IBM, NEC, Texas Instruments and Samsung provides both foundry design services and ICs fabrication.

Compared to traditional clicks-and-mortar, pure play e-retailers can serve a wider audiences without physical boundaries and distance. Besides, pure play e-retailers target at specific customer groups without high cost of obtaining information from these groups.

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Wikipedia