There are two types of analysis used to evaluate companies: fundamental and technical. Qualitative analysis, a subjective assessment method that is sometimes referred to as soft metrics, is part of fundamental analysis.

Qualitative analysis looks at aspects of a public company that aren’t quantifiable or easily explained by numbers. These can include things such as management’s capabilities, the quality and extent of research and development, and news about a company.

Generally, qualitative analysis is underappreciated and underutilized.