Soft Metrics

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.

comments powered by Disqus
Hot Definitions
  1. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  2. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  3. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  4. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  5. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  6. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
Trading Center