Quantitative analysis

Quantitative analysis

An assessment of specific measurable securities or investment factors, such as cost of capital, value of assets; and projections of sales, costs, earnings, and profits. Combined with more subjective or qualitative considerations (such as management effectiveness), quantitative analysis can enhance investment decisions and portfolios.

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Quantitative analysis

An analysis of the mathematically measurable figures of a company, such as the value of assets or projected sales.

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Quantitative analysis. When a securities analyst focuses on a corporation's financial data in order to project potential future performance, the process is called quantitative analysis.

This methodology involves looking at profit-and-loss statements, sales and earnings histories, and the statistical state of the economy rather than at more subjective factors such as management experience, employee attitudes, and brand recognition.

While some people feel that quantitative analysis by itself gives an incomplete picture of a company's prospects, advocates tend to believe that numbers tell the whole story.