1.

INTRODUCTION TO FUNDAMENTAL
ANALYSIS
FUNDAMENTAL ANALYSIS:
Fundamental analysis is the examination of the underlying forces that affect the
well being of the economy, industry groups, and companies. As with most analysis, the
goal is to derive a forecast and profit from future price movements. At the company
level, fundamental analysis may involve examination of financial data, management,
business concept and competition. At the industry level, there might be an examination
of supply and demand forces for the products offered. For the national economy,
fundamental analysis might focus on economic data to assess the present and future
growth of the economy. To forecast future stock prices, fundamental analysis combines
economic, industry, and company analysis to derive a stock's current fair value and
forecast future value. If fair value is not equal to the current stock price, fundamental
analysts believe that the stock is either over or under valued and the market price will
ultimately gravitate towards fair value. Fundamentalists do not heed the advice of the
random walkers and believe that markets are weak form efficient.
By believing that prices do not accurately reflect all available information,
fundamental analysts look to capitalize on perceived price discrepancies.

STRENGTHS AND WEAKNESS OF FUNDAMENTAL

ANALYSIS
STRENGTHS
Long-term Trends:
Fundamental analysis is good for long-term investments based on long-term
trends, very long-term. The ability to identify and predict long-term economic,
demographic, technological or consumer trends can benefit patient investors who pick
the right industry groups or companies.

Value Spotting:
Sound fundamental analysis will help identify companies that represent good
value. Some of the most legendary investors think long-term and value. Graham and
Dodd, Warren Buffett and John Neff are seen as the champions of value investing.
Fundamental analysis can help uncover companies with valuable assets, a strong
balance sheet, stable earnings and staying power

WEAKNESS
Time Constraints:
Fundamental analysis may offer excellent insights, but it can be extraordinarily
time consuming. Time-consuming models often produce valuations that are
contradictory to the current price.

Industry/Company Specific:
Valuation techniques vary depending on the industry group and specifics of each
company. For this reason, a different technique and model is required for different
industries and different companies. This can get quite time consuming and limit the
amount of research that can be performed.

Subjectivity:
Fair value is based on assumptions. Any changes to growth or multiplier
assumptions can greatly alter the ultimate valuation. Fundamental analysts are
generally aware of this and use sensitivity analysis to present a base-case valuation, a
best-case valuation and a worst-case valuation. However, even on a worst case, most
models are almost always bullish, the only question is how much so.

Analyst Bias:
The majority of the information that goes into the analysis comes from the
company itself. Companies employ investor relations managers specifically to handle
the analyst community and release information.

What is fundamental analysis?

Fundamental Analysis involves examining the economic, financial and other qualitative
and quantitative factors related to a security in order to determine its intrinsic value. It
attempts to study everything that can affect the security's value, including
macroeconomic factors (like the overall economy and industry conditions) and
individually specific factors (like the financial condition and management of companies).
Fundamental analysis, which is also known as quantitative analysis, involves delving
into a companys financial statements (such as profit and loss account and balance
sheet) in order to study various financial indicators (such as revenues, earnings,
liabilities, expenses and assets). Such analysis is usually carried out by analysts,
brokers and savvy investors.
Many analysts and investors focus on a single number--net income (or earnings)--to
evaluate performance. When investors attempt to forecast the market value of a firm,
they frequently rely on earnings. Many institutional investors, analysts and regulators
believe earnings are not as relevant as they once were. Due to nonrecurring events,
disparities in measuring risk and management's ability to disguise fundamental earnings
problems, other measures beyond net income can assist in predicting future firm
earnings.

Two Approaches of fundamental analysis:

While carrying out fundamental analysis, investors can use either of the following
approaches:
1 .Top-down approach: In this approach, an analyst investigates both international and
national economic indicators, such as GDP growth rates, energy prices, inflation and
interest rates.
The Search for the best security then trickles down to the analysis of total sales, price
levels and foreign competition in a sector in order to identify the best business in the
sector
2. Bottom-up approach: In this approach, an analyst starts the search with specific
businesses, irrespective of their industry/region.

How does fundamental analysis works?

Fundamental analysis is carried out with the aim of predicting the future performance of
a company. It is based on the theory that the market price of a security tends to move
towards its 'real value' or 'intrinsic value.' Thus, the intrinsic value of a security being
higher than the securitys market value represents a time to buy. If the value of the
security is lower than its market price, investors should sell it

The steps involved in fundamental analysis are:

1. Macroeconomic analysis, which involves considering currencies, commodities and
indices.
2. Industry sector analysis, which involves the analysis of companies that are a part of
the sector.
3. Situational analysis of a company.
4. Financial analysis of the company.
5. Valuation.
The valuation of any security is done through the discounted cash flow (DCF) model,
which takes into consideration:
1. Dividends received by investors
2. Earnings or cash flows of a company
3. Debt, which is calculated by using the debt to equity ratio and the current ratio (current
assets/current liabilities)

Fundamental Analysis Tools

These are the most popular tools of fundamental analysis.
Earnings per Share EPS
Price to Earnings Ratio P/E
Projected Earnings Growth PEG
Price to Sales P/S
Price to Book P/B
Dividend Payout Ratio
Dividend Yield
Book Value
Return on Equity

Financial ratios are tools for interpreting financial statements to provide a basis for
valuing securities and appraising financial and management performance.
A good financial analyst will build in financial ratio calculations extensively in a financial
modeling exercise to enable robust analysis. Financial ratios allow a financial analyst to:
Standardize information from financial statements across multiple financial years to
allow comparison of a firms performance over time in a financial model.
Standardize information from financial statements from different companies to allow
apples to apples comparison between firms of differing size in a financial model.
Measure key relationships by relating inputs (costs) with outputs (benefits) and
facilitates comparison of these relationships over time and across firms in a financial
model.
In general, there are 4 kinds of financial ratios that a financial analyst will use most
frequently, these are:

Performance ratios
Working capital ratios
Liquidity ratios
Solvency ratios
These 4 financial ratios allow a good financial analyst to quickly and efficiently address
the following questions or concerns:

Performance ratios
What return is the company making on its capital investment?
What are its profit margins?

Working capital ratios

How quickly are debts paid?
How many times is inventory turned?

Liquidity ratios
Can the company continue to pay its liabilities and debts?

Solvency ratios (Longer term)

What is the level of debt in relation to other assets and to equity?
Is the level of interest payable out of profits?

2.ECONOMIC ANALYSIS
The economic analysis aims at determining if the economic climate is conclusive
and is capable of encouraging the growth of business sector, especially the capital
market. When the economy expands, most industry groups and companies are
expected to benefit and grow. When the economy declines, most sectors and
companies usually face survival problems. Hence, to predict share prices, an
investor has to spend time exploring the forces operating in overall economy.
Exploring the global economy is essential in an international investment setting. The
selection of country for investment has to focus itself to examination of a national
economic scenario. It is important to predict the direction of the national economy
because economic activity affects corporate profits, not necessarily through tax
policies but also through foreign policies and administrative procedures.

Tools for Economy Analysis

The most used tools for performing economic analysis are:
Gross Domestic Product (GDP)
Monetary policy and Liquidity
Inflation
Interest rates
International influences
Fiscal policy
Influences on long term expectations
Influences on short term expectations

1) Gross Domestic product

GDP is one measure of economic activity. This is the total amount of goods and
services produced in a country in a year. It is calculated by adding the market values of
all the final goods and services produced in a year.
It is a gross measurement because it includes the total amount of goods and services
produced, of which some merely replace goods that have depreciated or have worn out.
It is domestic production because it includes only goods and services produced within
the country.

2) Inflation

Inflation can be defined as a trend of rising prices caused by demand

exceeding supply. Over time, even a small annual increase in prices of say 1 % will
tend to influence the purchasing power of the nation. In others word, if prices rise
steadily, after a number of years, consumers will be able to buy only fewer goods
and services assuming income level does not change with inflation.

3) Interest rate
Interest rate is the price of credit. It is the percentage fee received or paid by
individual or organization when they lend and borrow money. In general, increases in
interest rate, whether caused by inflation, government policy, rising risk premium, or
other factors, will lead to reduced borrowing and economic slowdown.

4) International influences
Rapid growth in overseas market can create surges in demand for exports,
leading to growth in export sensitive industries and overall GDP. In contrast, the
erection of trade barriers, quotas, currency restrictions can hinder the free flow of
currency, goods, and services, and harm the export sector of an economy.

5) Fiscal policy
The fiscal policy of the government involves the collection and spending of
revenue. In particular, fiscal policy refers to the efforts by the government to
stimulate the economic directly, through spending.

3.INDUSTRY ANALYSIS
An industry analysis helps inform business managers about the viability of their current
strategy and on where to focus a business among its competitors in an industry. The
analysis examines factors such as competition and the external business environment,
substitute products, management preferences, buyers and suppliers. Industry analysis
involves reviewing the economic, political and market factors that influence the way the
industry develops. Major factors can include the power wielded by suppliers and buyers,
the condition of competitors. And the likelihood of new market entrants.

Data needs for industry analysis:

Industry analysis requires a variety of quantitative and qualitative data. Though one
single source for all the data needs might not found, industry associates, business
publications and the department of economic analysis perform a comprehensive
industry analysis. A suggestive list of data categories that are utilized for performing
industry analysis is listed below.
Product lines
Product growth
Complementary product
Economics of scale
Suppliers
Labors
Substitute products
Buyers and their behavior
Product pattern (cyclical, seasonal)
Cost structure
Tools for industry analysis
Cross-sectional industry
Industry performance over time
Differences in industry risk
Prediction about market behavior

 Competitors over the industry life cycle

INDUSTRY PROFILE:
Indias real estate market is expected to reach US$ 180 billion by 2020 from US$ 93.8
billion in 2014. Emergence of nuclear families, rapid urbanisation and rising household
income are likely to remain the key drivers for growth in all spheres of real estate,
including residential, commercial and retail.
Real estate is currently the fourth-largest sector in the country in terms of Foreign Direct
Investment (FDI) inflows. Total FDI in the construction development sector during April
2000May 2015 stood at around US$ 24.07 billion.
The Government of India has been supportive to the real estate sector. In August 2015,
the Union Cabinet approved 100 Smart City Projects in India. The Government has also
raised FDI limits for townships and settlements development projects to 100 per cent.
Real estate projects within the Special Economic Zone (SEZ) are also permitted 100 per
cent FDI. In Union Budget 2015-16, the government allocated US$ 3.72 billion for
housing and urban development. The government has also released draft guidelines for
investments by Real Estate Investment Trusts (REITs) in non-residential segment.

MARKET SIZE
The Indian real estate market size is expected to touch US$ 180 billion by 2020. The
housing sector alone contributes 5-6 per cent to the country's gross domestic product
(GDP). Also, in the period FY08-20, the market size of this sector is expected to
increase at a compound annual growth rate (CAGR) of 11.2 per cent. Retail, hospitality
and commercial real estate are also growing significantly, providing the much-needed
infrastructure for India's growing needs.
Real estate has emerged as the second most active sector, raising US$ 1.2 billion from
private equity (PE) investors in the last 10 months.
Foreign investors have bought tenanted office space worth over US$ 2 billion in India in
2014, a four-fold rise compared to the previous year, in order to increase their rentyielding commercial assets in Asia's third largest economy.
According to a study by Knight Frank, Mumbai is the best city in India for commercial
real estate investment, with returns of 12-19 per cent likely in the next five years,
followed by Bengaluru and Delhi-National Capital Region (NCR). Also, Delhi-NCR was
the biggest office market in India with 110 million sq ft, out of which 88 million sq ft were
occupied. Sectors such as IT and ITeS, retail, consulting and e-commerce have
registered high demand for office space in recent times.

Delhis Central Business District (CBD) of Connaught Place has been ranked as the
sixth most expensive prime office market in the world with occupancy costs at US$ 160
per sq ft per annum, according to a survey by CBRE.

COMPETITOR ANALYSIS:

Tata Housing Development Company

Bombay Reality
Raheja Developers
Lodha Group
Magic bricks
Goderj Properties Limited
Skyline Builders
DLF Company

DLF Company

Founded by Chaudhary Raghvendra Singh in 1946

DLF's first residential project was Krishna Nagar in East Delhi, which was
completed in 1949.
Largest real estate company with revenues of US$ 1.4 billion (FY13)
Market capitalisation of US$ 7.2 billion
Developed 3,000 acre DLF City in Gurgaon
Net land bank of 348 million sq feet
Development of 22 urban colonies
Laing O'Rourke is a UK-based construction company that built Dubai
International Airport and London's Millennium Tower. It will construct all DLF's
landmark projects. Nakheel of Dubai are partnering with DLF for developing
townships in India.
WSP Group Plc is also partnering DLF, providing management and consultancy
to the built and natural environment. Feedback Ventures is providing consultancy
for faster project execution.
DLF has also teamed up with Hilton Hotels to jointly develop hotels in India.

Lodha Group

Lodha Group was established in 1980 by Mangal Prabhat Lodha.

Abhinandan and Abhishek, sons of Mangal Prabhat Lodha are in charge of the
groups developments in Mumbai.

The Group is currently developing in excess of 35 million sq.ft. of real estate, with
over 30 projects in and around Mumbai.

The Group also has its presence in Hyderabad and Pune.

Lodha Group employs over 3000 associates and site-based employment

includes 25,000 workers.

It was the first Indian real estate company to introduce a Customer Rewards
Program

It was also the first to introduce LEED certification for commercial projects

In 2008 the group received Rs. 1,700 Cr. worth of funding from a consortium of
investors led by Deutsche Bank making it one of the largest FDI deals in the
history of Indian Real Estate

The group won the Green GOOD DESIGN Award 2012 for its iconic project
World One

4.COMPANY ANALYSIS
Analysis of the company consists of measuring its performance and ascertaining the
cause of this performance. When some companies have done well irrespective of
economic or industry failure, this implies that there are certain unique characteristics for
this particular company that had made it a success. The identification of these
characteristics, whether quantitative or qualitative, is referred to as company analysis.
Quantitative indicators of company analysis are the financial indicators and operational
efficiency indicators. Financial indicators are the profitability indicators and financial
position indicators analyzed through the income and balance sheet statements,
respectively, of the company. Operational indicators are capacity utilization and cost
versus sales efficiency of the company, which includes the marketing edge of the
company.
Besides the quantitative factors, qualitative factors of a company also influence

investment decision process of an institutional investor. The focus of the qualitative

data, as revealed in the annual report- as in the directors speech. Rather than on
quantitative data.

Tools for company analysis

Company analysis involves choice of investment opportunities within a specific industry
that comprises of several individual companies. The choice of an investible company
broadly depends on the expectations about its future performance in general. Here, the
business cycle that a company is undergoing is a very useful tool to assess the future
performance from the company.
Company analysis ought to examine the levels of competition, demand, and other
forces that affect the companys ability to be profitable. Of these factors, understanding
the competitive environment is most important.
A business faces five forces of competition (porters model) namely, sellers competition,
buyers competition, competition from new entrants, exit competition. Competitive forces
include the power of those who sell the business, those who buy the business; those
who buy from the business, how easily new businesses can enter the industry, how
costly it is to exit, and finally, the competition from those who already in the industry.
How well a company deals with each of these forces will determine whether the
company earns above or below average profit. Each of these forces is discussed below.

The financial statements of the company:

Records that outline the financial activities of a business, an individual or any other
entity. Financial statements are meant to present the financial information of the entity in
question as clearly and concisely as possible for both the entity and for readers.
Financial statements for businesses usually include: income statements, balance sheet,
statements of retained earnings and cash flows, as well as other possible statements

Ratio analysis:

A tool used by individuals to conduct a quantitative analysis of information in a

company's financial statements. Ratios are calculated from current year numbers and
are then compared to previous years, other companies, the industry, or even the
economy to judge the performance of the company. Ratio analysis is predominately
used by proponents of fundamental analysis. There are many ratios that can be
calculated from the financial statements pertaining to a company's performance, activity,
financing and liquidity. Some common ratios include the price-earnings ratio, debt-equity
ratio, earnings per share, asset turnover and working capital.

ROA:

Return on assets, which, offering a different take on management's effectiveness

reveals how much profit a company earns for every dollar of its assets. Assets include
things like cash in the bank, accounts receivable, property, equipment, inventory and
furniture. ROA is calculated like this:

Annual net income/Total assets

ROI:

Return on Investment is one of several commonly used approaches for evaluating the
financial consequences of business investments, decisions, or actions. ROI analysis
compares the magnitude and timing of investment gains directly with the magnitude and
timing of investment costs. A high ROI means that investment gains compare favorably
to investment costs

GAINS- INVESTMENT COSTS

INVESTMENT COSTS
ROE:

Of all the fundamental ratios that investors look at, one of the most important is return
on equity. It's a basic test of how effectively a company's management uses investors'
money - ROE shows whether management is growing the company's value at an
acceptable rate. ROE is calculated as:

Annual Net Income

Average Shareholders' Equity
EPS:

The portion of a company's profit allocated to each outstanding share of common stock.
Earnings per share serve as an indicator of a company's profitability.

DPS:
The sum of declared dividends for every ordinary share issued. Dividend per share
(DPS) is the total dividends paid out over an entire year (including interim dividends but
not including special dividends) divided by the number of outstanding ordinary shares
issued.

DPS can be calculated by using the following

D - Sum of dividends over a period (usually 1 year)
SD - Special, one time dividends
S - Shares outstanding for the period

P/O RATIO:

The amount of earnings paid out in dividends to shareholders. Investors can use the
payout ratio to determine what companies are doing with their earnings
Calculated

DIVIDEND YEILD:
financial ratio that shows how much a company pays out in dividends each year relative
to its share price. In the absence of any capital gains, the dividend yield is the return on
investment for a stock. Dividend yield is calculated as follows

5.

COMPANY PROFILE

Introduction

Kolte-Patil has been creating landmarks for 25 years.

Founded 2 decades ago and guided by a simple yet profound philosophy; 'Creation, not
construction', Kolte-Patil Developers Ltd. is one of the foremost real estate companies
which is headquartered in Pune. Listed on NSE and BSE Kolte-Patil is Pune's largest
developer and has completed 1 crore sq. ft. of landmark developments in Pune and
Bengaluru. It is also present in Mumbai with some upscale redevelopment projects.
Headed by a team of visionaries and dynamic leaders, Kolte-Patil has till date built
projects in multiple segments such as residential, commercial, retail, IT parks, and
integrated townships. The long standing mission of the company is to dedicate itself to
create spaces that blend in with the surroundings and exude vitality and aesthetic
appeal, making the spaces present-perfect and future-proof. The core values of the
company honesty, innovation, excellence eco-friendliness, technology, sustainability,

value and commitment to time schedules are perfectly aligned with the living and
working spaces it builds.

History
The Company was setup as a partnership firm in 1989 and later incorporated under the
name Kolte-Patil Developers Ltd. (KPDL) on 25 November 1991,by Mr. Rajesh Patil, Mr.
Naresh Patil and Mr. Milind Kolte

Projects classification
Residential or Township
Commercial or Office spaces
Retail or shop

Overview

Dominant player in the Pune real estate market

Undisputed leader in the Pune market with consistent market share
ranging between 8-10% Well-reputed, trusted name with proven
execution capabilities
Successfully delivered over 7 msf. of area in Pune
Healthy Project Pipeline

judicious and structured land acquisition

Expanding presence in Bengaluru

51.7 msf. of saleable area spread across Pune, Mumbai and Bengaluru 30
ongoing and forthcoming projects with a total saleable area of 27.4 msf.
Future development potential of 24.3 msf.
Equity led growth supported by JDAs, JVs and PE partnerships (ICICI Ventures,
Portman Holdings, IL&FS)
PE investments till date are plain vanilla equity with no guaranteed IRR
structure
Expanding presence in high demand Bengaluru market 19 year presence and
strong 150 member team catering to Bengaluru market
Increased contribution expected going forward with 2.4 msf. of
ongoing/forthcoming projects

Foray into Mumbai market

Supply flexibility based on demand

Unlocking potential of society redevelopment space as an entry strategy

Current portfolio includes three projects in high value locations with a
saleable area of 0.3 msf.
To aid margin expansion and reduce working capital cycle going forward

Current focus on residential markets with only 10% commercial market

exposure Creating availability at every point of price spectrum

Advanced Construction Technology

Robust Balance Sheet Position

Strong Operational & Financial Performance

Strong Corporate Governance

Increasing organizational competences

Early adopters of new construction technology Providing strong delivery

capabilities Superior quality of construction
Conservative approach to debt financing based on project execution and cash
flow visibility Net debt-equity ratio at 0.2x as on 31st December, 2013
Assigned CRISIL A+/Stable' rating to the long-term bank facilities and nonconvertible debentures highest rated listed, pure-play residential player in
the CRISIL universe
2.6 msf. of new area sales in FY13 with on time construction and delivery of 4
msf. expected in the current fiscal year Revenue up 192% YoY to Rs. 727.5
crore and PAT growth of 216% YoY to Rs. 107.4 crore in FY13
Deloitte and KPMG as statutory and internal auditors Board constitution with
50% Independent Directors Stated dividend policy of distributing 15-25% of
annual profits

Improving process orientation implementing ERP, defining SOPs Creating robust

knowledge management mechanisms Expanding top/middle management layer
to support next level of growth opportunity

6.RESEARCH DESIGN OF THE STUDY

INTRODUCTION:
Every stock available in the markets has a value called market price, which is the
indicator of the companys performance. According to fundamental analysis we will try to
find the intrinsic value of a particular stock, which is the true value of the stock, based
on which investment arguments take place.

STATEMENT OF PROBLEM:
Every asset, financial as well as real, has value. The key to successfully investing
in and managing these assets lies in understanding not only what the value is, but the
sources of the value. Any asset at can be valued but some assets are easier to value
than others, and the details of the valuation will vary from case to case. Thus, the
valuation of a share of a real estate property will require different information and follow
a different format from the valuation of a publicly traded stock. What is surprising;
however, is not the difference in valuation techniques across assets, but the degree of
similarity in basic principles. There is undeniably uncertainty associated with valuation.
Often the
Uncertainty comes from the asset being valued, although the valuation model may add
to that ascertained.
A postulate of sound investing is that an investor does not pay more for asset
than its worth. This statement may seem logical and obvious as financial assets are
acquired for the cash flows expected from owning them, which implies that the price that
is paid for any asset should reflect the cash flows it is expected to generate.
The problem in valuation is not that there are not enough models to value an
asset; it is that there are too many. Choosing the right model to use in valuation is as
critical to arriving at a reasonable value as understanding how to use the model.
Analysts use a wide variety of models from simple to the sophisticated. These models
often make different assumptions about pricing, but they do share some common

characteristics so in the study we tried to use price-earnings multiples and discounted

cash flow models of valuation.

OBJECTIVES OF THE STUDY:

1. To understand the macroeconomic variables those will an impact on the company
progress.
2. To study the various trends, opportunities, challenges of the industry in which the
company operates.
3. To understand the various policies of the company those have impact on the
financial performance of the company.
4. To understand the various investment valuation models that can be used.
5. To select the appropriate model that suits the stock.
6. Find the intrinsic value of the stock and compare with market value of the study.
7. To recommend whether to buy, hold or sell the stock based on the analysis.

SCOPE OF THE STUDY:

The study basically tries to identify the intrinsic value of the company by using
the published financial details of the company. The study is restricted to one particular
company in the sector. The study

also includes testing the intrinsic value of the

company.

RESEARCH METHODOLOGY:
Type of research:
Research design is the conceptual structure within which research is conducted.
It constitutes the blue print for the collection, measurement, and analysis of data. The
type of research adopted for the study is descriptive research as the research does not
require any manipulation of variables and does not establish causal relationship
between events; it just simply describes the variables.

Sources of data:

Primary data
Those are the data that are obtained by a study specially designed to fulfill the
data needs of the problem. Meeting the company professionals personally collected the
information necessary for the study.

Secondary data
The sources of secondary data for solve the problems are:Company Annual Report
HDFC securities institutional research
Internet-websites

Period of study
The period of the study is 5 years i.e. (20010-2015). Company 4 years data has been
taken for the analysis.

Tools
These are the most popular tools of fundamental analysis. They focus on earnings,
growth, and value in the market.
Earnings per Share EPS
Price to Earnings Ratio P/E
Projected Earnings Growth PEG
Price to Sales P/S
Price to Book P/B
Dividend Payout Ratio
Dividend Yield
Book Value
Ratio Analysis
Liquid ratio

LIMITATIONS OF THE STUDY:

The study was confined only to one particular sector.

The study was more confined with secondary data.

The study assumes no changes in the tax rates in the country.

The study was done for a short period of time, which might not hold true over a
long period of time.

As the scope is defined by the researcher it restricts the number of variables

which Influence the industry.

7.

DATA ANALYSIS

The process of evaluating data using analytical and logical reasoning to examine each
component of the data provided. This form of analysis is just one of the many steps
that must be completed when conducting a research experiment. Data from various
sources is gathered, reviewed, and then analyzed to form some sort of finding or
conclusion. There are a variety of specific data analysis method, some of which
include data mining, text analytics, business intelligence, and data visualizations
Data can be of several types
Quantitative data is a number
Qualitative data is a pass/fail or the presence of a characteristic
Quantitative data is data measured or identified on a numerical scale. Numerical data
can be analyzed using statistical methods, and results can be displayed using tables,
charts, histograms and graphs.
The term qualitative data is used to describe certain types of information. This is almost
the converse of quantitative data, in which items are more precisely described as data
in terms of quantity and in which numerical values are used. However, data originally
obtained as qualitative information about individual items may give rise to quantitative
data if they are summarized by means of counts.
Qualitative data described items in terms of some quality or categorization that may be
'informal' or may use relatively ill-defined characteristics such as warmth and flavor.
However, qualitative data can include well-defined aspects such as gender, nationality
or commodity type.