RANKING OF SELECTED NASDAQ100 COMPANIES ACCORDING TO THEIR FINANCIAL PERFORMANCE WITH MCRAT AND RAPS

Abstract

In this study, two new multi-criteria decision-making methods (MCDMs) for investment decision making in the stock market are introduced. The first method is called multiple criteria ranking by alternative trail (MCRAT); the second method is ranking alternatives by perimeter similarity (RAPS). In this study, 79 stocks in the NASDAQ 100 index are ranked by MCRAT and RAPS methods based on 9 different financial indicators. The ranking results obtained were compared with the widely preferred TOPSIS method using the same alternatives and criteria. As a result of the analysis, it is observed that MCRAT and RAPS methods have high correlation with the ranking results obtained by TOPSIS method. Therefore, it is concluded that MCRAT and RAPS methods can be used with confidence when making investment decisions in the stock market.