A Summary of Sample Analysis

How we analyzed an aggregated data set of 100 big companies

Let’s do a quick recap post of how we got to our market metric benchmark of 100 big companies.

First, we started small with Long-term PE Ratios for Ten Big Companies. Then, we grew the sample by Comparing 10 big companies and 25 big companies. We then realized that Banks are weird. Then we saw that The Stock Sample Size Grows! by expanding to 100 companies.

At that point, the data set seemed solid, with each constituent contributing thirty years of fundamental stock data. But, we wanted to really make sure it was a good sample for the market.

First we saw that Banks Can't Skew Our Sample! Then, we asked, What about AMZN, GOOG, FB and others? After that, we saw that Outliers Matter. And, since it wasn’t enough to look at each component individually, we did more analysis by Putting it all together. Finally, to do a sanity check, we looked at two Benchmarks.

A lot of work goes into creating good metrics that will be informative and representative of the market phenomenon we are trying to capture. Now that we’ve got a good one, it’s time to have some serious fun and check out a ton of cool metrics using that sample!

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