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Fuzzy Logic based Stock Value Prediction using Fundamental Analysis


Affiliations
1 Dept. of Computer Science and Engineering, Swami Vivekanand College of Engineering, Indore, India
 

Stock market is very versatile and fluctuates with time. For the same way it becomes difficult to predict movement of the stock, there are various approaches and tools through which the price of the stock is determined by the past patterns. Mostly the approaches are in terms of fundamental approach and technical approach. For the long-term valuation fundamental approach is used. Every stock is having its own value that does not depend on the price of the stock that is known as Intrinsic value. The proposed model works through phases of data collection, feature processing, fuzzy logic mapping and stock value calculation. Fuzzy logic is used to map the quality as well as quantity valuation factors. The IF THEN rules are applied on the linguistic variable.  The fuzzy model outcomes the stock value which is used to provide stock worth. The stock value is calculated by Dividend discount model. Accuracy of the system is 0.77. The results offer the backbone for the value and not the price.

Keywords

Fuzzy Logic, Intrinsic Value, Stock Valuation.
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  • Fuzzy Logic based Stock Value Prediction using Fundamental Analysis

Abstract Views: 278  |  PDF Views: 3

Authors

Chittaranjan Mangale
Dept. of Computer Science and Engineering, Swami Vivekanand College of Engineering, Indore, India
Shyam Sundar Meena
Dept. of Computer Science and Engineering, Swami Vivekanand College of Engineering, Indore, India
Preetesh Purohit
Dept. of Computer Science and Engineering, Swami Vivekanand College of Engineering, Indore, India

Abstract


Stock market is very versatile and fluctuates with time. For the same way it becomes difficult to predict movement of the stock, there are various approaches and tools through which the price of the stock is determined by the past patterns. Mostly the approaches are in terms of fundamental approach and technical approach. For the long-term valuation fundamental approach is used. Every stock is having its own value that does not depend on the price of the stock that is known as Intrinsic value. The proposed model works through phases of data collection, feature processing, fuzzy logic mapping and stock value calculation. Fuzzy logic is used to map the quality as well as quantity valuation factors. The IF THEN rules are applied on the linguistic variable.  The fuzzy model outcomes the stock value which is used to provide stock worth. The stock value is calculated by Dividend discount model. Accuracy of the system is 0.77. The results offer the backbone for the value and not the price.

Keywords


Fuzzy Logic, Intrinsic Value, Stock Valuation.

References





DOI: https://doi.org/10.13005/ojcst%2F10.01.16