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Qualitative and Quantitative Strategies of Stock Evaluation

Let's understand the strategies of stock evaluation by bifurcating stock analysis into 2 broad categories u2013 qualitative and quantitative. Visit https://www.investmentz.com/ to know more!<br>

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Qualitative and Quantitative Strategies of Stock Evaluation

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  1. Qualitative and Quantitative Strategies of Stock Evaluation

  2. The Relevance of Stock Analysis • A lot has been said about trading equities, but the fact is that the process can be very rewarding if one trades the right stocks at the right time. • And one of the most significant aspects of deciding what stocks to buy is to carry out an in-depth analysis of the shares earmarked. • This analysis may be carried out in multiple ways – from a comprehensive technical evaluation of the stock to a more in-depth research on the general aspects such as the background of the company offering the stocks. • It is with this idea that we may bifurcate stock analysis into 2 broad categories – qualitative and quantitative.

  3. An Introduction to Qualitative Stock Analysis • Qualitative stock analysis refers to analysis of stocks based on factors that cannot be measured. • These may include aspects such as the policies and objectives of the company offering the stocks, its transparency levels, customer satisfaction levels etc. • Qualitative stock analysis allows traders and investors to transcend the technicalities of stock evaluation and also consider the other intangible factors that can influence stock performance. • While opting for investment in equity shares, many investors incorporate a logical blend of the qualitative and quantitative strategies to select the best stocks from the market.

  4. All About Quantitative Stock Analysis • Quantitative stock analysis deals with the technical and concrete methodologies of stock evaluation. • These include technical stock evaluation strategies such as the use of metrics (e.g. the P/E, P/B and PEG ratios), as well as an in-depth analysis of other forms of quantitative data available. • These evaluations help one to concretely value a stock based on factors such as its past performance records, the total assets and liabilities owned by the company etc. • Such a technical analysis of stock trends enables one to make informed decisions about whether or not to purchase them.

  5. Differences Between Qualitative & Quantitative Stock Analysis Qualitative Stock Analysis Quantitative Stock Analysis • Makes use of immeasurable equity fundamental analysis strategies, such as the company’s business ideas, objectives, vision, competitive advantage, customer reviews and satisfaction levels etc. • Collects data from sources like company portfolios, customer testimonials and personal discussions. • A people-centred approach to stock evaluation. • Makes use of concrete stock evaluation methods, including its scores on various metrics, the company’s total number of outstanding assets, its liabilities etc. • Derives information from sources such as income statements, balance sheets etc. • A number-centred approach to stock evaluation.

  6. Visit www.investmentz.com to know more!

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