Qualitative and Quantitative Factors in Fundamental Analysis Quiz

Which approach in fundamental analysis starts by analyzing the macroeconomic environment and then moves to individual stocks?

What qualitative factor would you study to understand a company’s ability to navigate disruptions and maintain consistent operations?

Qualitative factors in fundamental analysis can be directly measured and are usually reflected in financial statements.

A company’s return on equity (ROE) is a quantitative measure of how well the company is using its assets to generate profits.

Match the term with its definition

Arrange the following valuation ratios in ascending order of how much they focus on earnings, starting with the lowest: Price-to-Sales (P/S), Price-to-Book (P/B), Price-to-Earnings (P/E).

Which qualitative or quantitative factor do you think is most crucial for a company’s long-term success, and why? Provide an example to support your viewpoint.