Numbers describe outcomes; qualitative analysis explains whether they can persist.
| Concept | Explanation | |---|---| | Quantitative evidence | Revenue, margins, cash flow, debt, users, fees, supply, and valuation ratios. | | Qualitative evidence | Brand, switching costs, governance, regulation, technology, management quality, and competitive behavior. | | Historical evidence | What has already occurred. | | Forward-looking evidence | Estimates, guidance, industry trends, roadmaps, and scenario assumptions. | | External evidence | Competitor data, market share, customer concentration, and macro conditions. |
Key idea: Numbers describe outcomes; qualitative analysis helps explain whether those outcomes can persist.