Investopedia

Continue to Site »

Soft Metrics

Filed Under » , ,
Dictionary Says

Definition of 'Soft Metrics'

A slang term for intangible indicators used to value a startup company (can be used for larger firms but hard metrics are preferred). Soft metrics are often related to aspects of a firm that cannot be easily measured but still provide important information in relation to the present and future prospects of a firm. Since soft metrics are not easily measured or identified, quantifying them can be quite difficult.
Investopedia Says

Investopedia explains 'Soft Metrics'

Soft metrics evaluate the things that aren't apparent but may help predict a company's future: are there heavy hitters on the board of directors? Has the management team succeeded before? In comparison to hard metrics, soft metrics can often provide an answer as to why hard metrics may be trending in a certain direction or to unexpected results. Examples of hard metrics would be contributing factors such as net profit margin and free cash flow.

Articles Of Interest

  1.

    Using The Price-To-Book Ratio To Evaluate Companies

    The P/B ratio can be an easy way to determine a company's value, but it isn't magic!

  2. How To Decode A Company's Earnings Reports

    Read between the lines to decipher a company's true financial condition.

  3. Qualitative Analysis: What Makes A Company Great?

    To understand the qualities that make for a great company, investors must dig deep into "soft" metrics.

  4. 5 Ways To Rate Your Portfolio Manager

    These five performance ratios will help you measure how good your money manager is at increasing the value of your portfolio.

  5. Valuing Private Companies

    You may be familiar with publicly-traded companies, but how much do you know about privately-held firms?

  6. How To Use The P/E Ratio And PEG To Tell A Stock's Future

    While the price-to-earnings ratio is commonly used for assessing stock prices, the price/earnings-to-growth ratio offers forecasting advantages that investors need to know.

  7. Intangible Assets Provide Real Value To Stocks

    Intangible assets don't appear on balance sheets, but they're crucial to judging a company's value.

  8. 7 Unconventional Ways Businesses Can Borrow Money

    Find out how your business can get the money it needs - even when the bank says "no".

  9. Should You Head Back To Business School?

    Find out if an MBA is necessary for you to reach your professional goals.

  10. Women And Finances: Is There A Gender Bias?

    Uncover some very complex reasons for female gender biases in the finance world.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center