Fundamental analysis is the method of analyzing companies based on factors that affect their intrinsic value. There are two sides to this method: the quantitative and the qualitative. The quantitative side involves looking at factors that can be measured numerically, such as the company's assets, liabilities, cash flow, revenue and pricetoearnings ratio. The limitation of quantitative analysis, however, is that it does not capture the company's aspects or risks unmeasurable by a number  things like the value of an executive or the risks a company faces with legal issues. The analysis of these things is the other side of fundamental analysis: the qualitative side or nonnumber side.
Although relatively more difficult to analyze, the qualitative factors are an important part of a company. Since they are not measured by a number, they more represent an either negative or positive force affecting the company. But some of these qualitative factors will have more of an effect, and determining the extent of these effects is what is so challenging. To start, identify a set of qualitative factors and then decide which of these factors add value to the company, and which of these factors decrease value. Then determine their relative importance. The qualities you analyze can be categorized as having a positive effect, negative effect or minimal effect.
The best way to incorporate qualitative analysis into your evaluation of a company is to do it once you have done the quantitative analysis. The conclusion you come to on the qualitative side can put your quantitative analysis into better perspective. If when looking at the company numbers you saw good reason to buy the company, but then found many negative qualities, you may want to think twice about buying. Negative qualities might include potential litigations, poor R and D prospects or a board full of insiders. The conclusions of your qualitative analysis either reconfirms or raise questions about the conclusions of your quantitative analysis.
Fundamental analysis is not as simple as looking at numbers and computing ratios; it is also important to look at influences and qualities that do not have a number value.
For further reading, see Guide To Stock Picking Strategies, Putting Management Under The Microscope and Competitive Advantage Counts.

What information should I look at on a publicly traded company for use in fundamental ...
Learn what information is important in fundamental analysis of a publicly traded company and how to use it to assess the ... Read Answer >> 
How legitimate are companies that advertise debt consolidation for all my credit ...
Learn about how fundamental analysis ratios can be combined with quantitative stock screening methods and how technical indicators ... Read Answer >> 
Is it better to use fundamental analysis, technical analysis or quantitative analysis ...
Understand the difference between fundamental, technical and quantitative analysis, and how each measurement helps investors ... Read Answer >> 
How does fundamental analysis differ from technical analysis?
Learn about the differences between technical analysis and fundamental analysis, such as how these investment strategies ... Read Answer >> 
How do banks measure the Five Cs of Credit?
Learn about the five C's of credit and what qualitative and quantitative methods banks use to measure them when evaluating ... Read Answer >> 
How do economists measure positive and negative externalities?
Learn the definition of positive and negative externalities and which methods economists use to measure externalities in ... Read Answer >>

Fundamental Analysis
Understanding Qualitative Analysis
Qualitative analysis is a general term describing the nonmathematical scrutiny used by investors and managers to make investment and business decisions. 
Fundamental Analysis
What is Quantitative Analysis?
Quantitative analysis refers to the use of mathematical computations to analyze markets and investments. 
Markets
Using Porter's 5 Forces To Analyze Stocks
These five qualitative measures allow investors to draw conclusions about a corporation that are not apparent on the balance sheet. 
Investing Basics
A Simple Overview Of Quantitative Analysis
All of the potential highs, lows, and sentiments associated with investing can overshadow the ultimate goal—making money. The “quantitative” approach to investing seeks to pay attention to the ... 
Professionals
Quantitative Analyst: Job Description & Average Salary
Learn the different job duties of a quantitative analyst and how much money an analyst makes; understand the skills needed to be successful at this career. 
Personal Finance
The Basics Of Business Forecasting
Discover the methods behind financial forecasts and the risks inherent when we seek to predict the future. 
Investing Basics
How An IPO Is Valued
The process of determining a company’s initial share price includes quantitative and qualitative components. 
Trading Strategies
Fundamental and Technical Analysis for Pairs Trading
Pairs traders employ either fundamental or technical analysis, or a combination of the two, to make decisions regarding which instruments to pair, and when to get in and out of trades. Many pairs ... 
Active Trading
Fundamental Analysis For Traders
Find out how this method can be applied strategically to increase profit. 
Investing
Understanding Fundamental Vs. Technical Analysis
The methods used to analyze securities and make investment decisions fall into two very broad categories: fundamental and technical analysis. Learn the core differences in these strategies and ...

Qualitative Analysis
Securities analysis that uses subjective judgment based on nonquantifiable ... 
Fundamental Analysis
A method of evaluating a security that entails attempting to ... 
Benefit Cost Ratio  BCR
A ratio attempting to identify the relationship between the cost ... 
Fundamentals
The qualitative and quantitative information that contributes ... 
Quantitative Analysis
A business or financial analysis technique that seeks to understand ... 
Quantitative Trading
Trading strategies based on quantitative analysis which rely ...