Financial Evaluation and Prioritization of Base Metals Industries listed in Tehran Stock Exchange based on Analytic Hierarchy Process (AHP)

Today, the need for quick and accurate decision making in the face of environmental changes imposes special conditions on decision makers. Due to multiplicity and complexity of the relationships between the factors affecting stock selection decision, buyers and sellers in capital market are confused. Hence, it seems necessary to use a correct and logical way to make the best stock selection decision. The present research aimed to provide a financial evaluation and prioritization of base mental companies listed in Tehran Stock Exchange in a 5 year period from 2005 to 2009. For this purpose, 20 financial ratios including liquidity, operation, leverage and profitability ratios obtained from the financial statements of the listed companies were analyzed as the variables of this research through analytic hierarchy process (AHP) using Expert Choice Software. Based on AHP, 8 financial ratios were selected as the main variables of the research. The results showed that National Iranian Copper Industries Co. and Iranian Lead and Zinc Co. held the first and last place in the base metal industry, respectively.

Keywords:

financial ratios , analytic hierarchy process (AHP) , base metal industries