|
|
Factor analysis |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Factor analysisA statistical procedure that seeks to explain a certain phenomenon, such as the return on a common stock, in terms of the behavior of a set of predictive factors.Factor analysis Similar MatchesFundamental analysisFundamental analysisAn approach to investment that focuses on analysis of a company's financial and business strengths, and how its performance has been converted into share price movements in the past.So fundamental analysis is primarily concerned with:turnovercompetitive advantagemanagementprofitabilityassetscash flowearningsrelative strength of the share priceOn the basis of these, analysts forecast:the future growth rate of a company's earningshow long the expected growth rate will lastWith those figures, the analysts predict the stream of future dividends from the company, discount them backwards to get their current value, and arrive at a figure for what the shares are currently worth.Critics of this sort of analysis argue that the figures are highly conjectural given that no-one knows how quickly a company will grow, nor how long it will carry on growing.Fundamental analysis is often contrasted with technical analysis which focuses less on the business per se than on pure share price movements and how they are influenced by market sentiment. As far as technical analysts are concerned, the value of a share has less to do with a mathematical computation of future earnings than it does with the mood of the market and 'what people will pay'. Ex post analysisEx post analysisAnalysis of the effects of a policy, such as trade liberalization or formation of a PTA, based on information available after the policy has been implemented and its performance observed. Also retrospective analysis. Break even analysisBreak even analysisAn analysis of the level of sales at which a project would make zero profit. Horizon analysisHorizon analysisAn analysis of returns using total return to assess performance over some investment horizon. Discriminate analysisDiscriminate analysisA statistical process that links the probability of default to a specified set of financial ratios. Further SuggestionsCredit analysisCluster analysis Time series analysis Decision Break Point Analysis Scenario analysis technical analysis Common size analysis Retrospective analysis Electronic Data Gathering, Analysis and Retrieval System Ex ante analysis Trend Ratio Analysis Multiple discriminant analysis (MDA) Mean variance analysis Cross sectional analysis regression analysis Regression analysis Quantitative analysis Market analysis Quantitative analysis Technical analysis Prospective analysis Qualitative analysis Common base year analysis Force Field Analysis Comparative market analysis |
|
|
|