Approach for stock investment decisions based on rough set theory
ByH.Z. Dai, C. Liu & X.Z. Bao
Pages 4

Generally speaking, evaluation of enterprise business performance is conducted in terms of enterprise’s debt paying ability, profitability, assets operation and growth ability. In analysis of stock investment value, the equity expansion ability is vital to evaluation of investment value in that it can indicate listed company’s potential to scale up. In this thesis, specific financial indicators in terms of debt paying ability, profitability, assets operation ability, growth ability, and equity expansion ability are selected to give comprehensive expression of listed company’s business performance. The initial selection result covers 8 financial indicators, including return on net assets (C1), net profit growth rate (C2), total assets growth rate (C3), sales growth of main business (C4), debt ratio of cash flow (C5), total assets turnover ratio (C6), price-toearnings ratio (C7), and price-book ratio (C8). The initial selection result of the indicators is shown in Table 1.