Stock selection by PROMETHEE ranking method: An application on BIST-30 index

From the past to the present, the assessment of savings has been of great importance for individuals and businesses. In today's conditions, especially in consumer societies, the need for money increases more than before. For this reason, saving and evaluation of savings has become more important for individuals and businesses. Saver owner must make a decision during the evaluation phase. With the introduction of factors such as developing technology, the globalizing world and communication, alternatives to which savings can be evaluated have increased in the same direction. Factors such as easier access to world stock exchanges, shortening and simplifying trading times have become attractive alternatives for savings and investors. Legal, reliable and profitable transactions in the stock market attracted investors and investors. Stock exchange purchase and sale transactions were the most preferred transactions on the stock exchange. It has become even more difficult and important to decide among the increasing alternatives for decision makers. It is important that the right stock can be selected among the alternatives for stock trading. With increasing factors such as technology, studies, techniques and applications have been developed to facilitate decision making among alternatives. Such decision problems are called multi-criteria decision making problems. In this study, one of the techniques, promethee method, stock selection decision problem is examined. The stocks of the banks included in BIST 30 index were analyzed and the optimum criteria for each share were determined and analyzed. The 10 criteria determined for the solution of the stock selection problem are obtained from the financial statements of the banks and the financial market data. As an alternative, 7 bank stocks and criteria were applied with promethee ranking method. After the partial sequencing results were reached with PROMETHEE I, GAIA analysis of the alternatives that were prioritized by full sequencing with PROMETHEE II was performed. As a result of the study, it was found that promethee method, which is one of the multi criteria decision making techniques, helps the decision maker to choose the most suitable one among the stocks that provide the necessary criteria. Keywords: Multi Criteria Decision Making, Promethee, Stock Selection, Bank.