Ranking of Selected Companies in BIST30 According to Their Financial Performance with MCRAT and RAPS

Abstract

Multi-criteria decision-making methods (MCDMs) are methods to support decision-making processes that are widely used in different areas of personal and organizational life. In this paper, two relatively new MCDM decision-making methods are used to make investment decisions in the stock market. The first method is multiple criteria ranking by alternative trace (MCRAT) and the second method is (ranking alternatives by perimeter similarity (RAPS). In the study, 24 stocks within the scope of BIST30 were ranked by MCRAT and RAPS methods within the framework of 11 financial indicators (criteria). The ranking results obtained from these two relatively new methods were compared with the ranking results obtained by TOPSIS method, which is another CRM method that is often used reliably by researchers, using the same alternatives and the same criteria. As a result of the analysis, it was observed that MCRAT and RAPS ranking results have high rank correlation with TOPSIS ranking results. Therefore, it is concluded that MCRAT and RAPS methods can be used with confidence when making investment decisions in the stock market.