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NEW METHOD TO EVALUATE FINANCIAL PERFORMANCE OF COMPANIES BY FUZZY LOGIC: CASE STUDY, DRUG INDUSTRY OF IRAN

M. tavakkoli

Petroleum University of Technology, Iran

 

A. Jamali

Shahed University of Tehran, Iran

 

A. Ebrahimi

Tehran University, Iran

ABSTRACT

Nowadays one of the main reasons that prevent investors from entering emerging markets is the uncertainty of these markets. To choose suitable portfolio in stock market, there are two common techniques; technical analysis and fundamental analysis. One of the most important parts of fundamental analysis is financial analysis. Different methods have been used to evaluate financial status of industries and organizations in different researches. In this research a method based on fuzzy logic introduced that will help investors assess the company‟s financial performance. Also this method takes more actions to rank the companies included in each industry. This article aims at using this methodology to consider drug & healthy product industry and rank the companies included in this industry as an empirical case. Finally, results obtained from this methodology have been tested through statistical tests (mean test) and this methodology was certified based on them.

Key words: technical analysis, fundamental analysis, decision making, Stock exchange, fuzzy logic.

JEL codes: G10