The quantitative side involves looking at factors that can be measured numerically, such as the company’s assets, liabilities, cash flow, revenue, and price-to-earnings ratio. The goal of fundamental analysis is to produce a quantitative value that investors can compare with a security’s current price, to help determine whether the security is undervalued or overvalued.
The limitation of quantitative analysis, however, is that it does not capture the company’s aspects or risks unmeasurable by a number—things like the value of an executive or the risks a company faces with legal issues. The analysis of these things is the other side of fundamental analysis: the qualitative side or non-number side.