Quantitative Stock Analysis

Quantitative Stock Analysis involves mathematical and statistical modeling of data. The Data could be Economic, Industry, Exchange Data and Company’s earnings to determine a valuation for a Stock.

One of the two methods to determine a value for the stock, is Quantitative Stock Analysis. This employs research techniques that involve the modeling of various data series. There are two main types of quantitative valuation objectives. The first is a Relative Valuation, via the modeling of earnings multiples of a Company, compared to similar companies. The second is an absolute valuation, resulting in a Price Objective or Target for a Stock. The capacity to crunch the numbers is what enables the measurement and the researching of market and valuation trends. The data series employed can be very wide including Industry data, Economic Data, Stock Market Data including Stock Price. Company forward earning data can be used including Sales, Earning, Cash Flow Data, to name a few.