Qualitative Analysis
Definition of 'Qualitative Analysis'Securities analysis that uses subjective judgment based on nonquantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations. This type of analysis technique is different than quantitative analysis, which focuses on numbers. The two techniques, however, will often be used together. |
|
Investopedia explains 'Qualitative Analysis'While most investors and analysts rely largely on quantitative measures, metrics such as the debt-to-equity and price-to-equity ratios, supplementing the analysis with qualitative analysis increases the insight into the company. Using qualitative factors will often give analysts an edge since key factors, such as management, does not show up in quantitative analysis.To help you remember, qualitative = qualities of a company. |
Related Definitions
Articles Of Interest
-
7 Steps To A Successful Investment Journey
Before you start investing, educate yourself on financial ideas and develop a strategy that agrees with your personality. -
Qualitative Analysis: What Makes A Company Great?
To understand the qualities that make for a great company, investors must dig deep into "soft" metrics. -
Portfolio Mismanagement: 7 Common Stock Errors
Don't lose your shirt over these seven simple - and preventable - investment follies. -
Competitive Advantage Counts
What's the best indicator of a company's future success? Its ability to succeed when others fail. -
Let Your Intuition Guide Your Investments
Don't ignore that gut feeling - it might just be leading you in the right direction. -
Economic Moats: A Successful Company's Best Defense
Find out why some companies thrive while others flounder. -
How do I take qualitative factors into consideration when using fundamental analysis?
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 ... -
Yield Investing: Dividend, Earnings And FCF
There are numerous ways to value investments, and many investors prefer a specific valuation method. Yield investing is one way to value a stock by comparing the current price to various factors. ... -
How To Value An Insurance Company
In the insurance space, accurate predictions of metrics such as ROE are important, and paying a low P/B can help put the odds in investors' favor. -
Equity Valuation: The Comparables Approach
The main purpose of equity valuation is to estimate a value for a firm or security. There are three primary equity valuation models: the discounted cash flow (DCF), cost and comparable approaches. ...
Free Annual Reports