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Quantitative analysis
Fundamental factors that are capable of being measured or expressed in numerical terms form
the quantitative measures component of fundamental analysis.
Fundamental analysts focus on the underlying business of the company being evaluated and
specifically look at quantitative measures such as:
Revenues
Earnings
Assets
Debts
These financial measures are often combined to produce fundamental or financial ratios that
analysts can use to compare the company they are analyzing to:
Dividend yield
Price to earnings ratio (PE)
Return on equity (ROE)
Qualitative analysis
Qualitative information that cant be expressed in numbers but relates to the nature of the
company itself is also very important in assessing the future performance of a company.
Types of qualitative information may include:
Market
sentiment
Timing
Based on
assumptions