Types of Fundamental Analysis of Stocks

Types of Fundamental Analysis of Stocks is mistaken as only quantitative analysis. However, there are two Types of Fundamental Analysis i.e. qualitative and quantitative fundamental analysis. The quantitative and qualitative are two fundamental analyses. It is the stock that involves a brand value. The financial performance of the company is totally dependent on the company’s decision. The quantitative approach will include numbers. They are used to analyze numbers in financial statements and remove conclusions from the price of shares. The process of fundamental analysis is a top-down and bottom-up approach. The top-down approach looks like a macroeconomic factor and digs into specific companies. The bottom-up approach analyzes the company first and checks the effect of macroeconomic factors on the company’s performance. It is the factor affecting the analysis of stock and the company’s revenue and structure.

Difference

Qualitative data analysis is based on the classification of objects. The quantitative is based on computable values. It is subjective whereas quantitative is objective. The data in qualitative analysis is collected in the small unrepresentative samples. In quantitative analysis, data is collected in large representative samples that generalize the entire population. Qualitative analysis is called exploratory where the analysis seeks to understand why a phenomenon occurs. Quantitative can be conclusive to see how much phenomenon occurs or not. In the qualitative, the research findings are specific to objects studied and not applicable to the general population. In quantitative analysis, the findings are applicable to the general population. In the qualitative analysis, the researchers ask open-ended questions, conduct interviews, and observations. In quantitative researchers will take measurements, experiments, and observations. The qualitative gets a deep understanding of social interactions while quantitative analysis seek to test hypotheses and give future predictions

Qualitative analysis

They are used to measure quality rather than quantity. We can explore how to describe something. We don’t use numbers/expressions to describe these things. When we do qualitative work we work with description. The work is related to feelings, thoughts, and perceptions.

Example : The quantitative analysis focuses on what. What happened? How many people bought this product? What percentage of people considered this brand? Quantitative and research will include closed-ended questions and surveys. They have large-scale data sets, structured data, and tracking software as marketing automation and advertising.

Quantitative analysis

It is opposite and used to measure quantity than quality. At the time of quantitative analysis, we explore the facts as numbers and percentages. We work with numbers, formulae, and data. Both qualitative and quantitative is important to public relations.

Example : The qualitative analysis focuses on why. Why do people behave in some ways? Why do they make decisions? The qualitative analysis and research include unstructured interviews and Case studies. Qualitative tends to look at some things to understand why.

Summary

Quantitative research is used to generate numerical data. This is used to produce statistics and identify the pattern. The qualitative research focus group is used to understand opinions, attitudes, and motivations that cannot be quantified with numbers.

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Qualitative analysis

Quantitative analysis

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