A comparative analysis of promethee, ahp and topsis aiding in financial analysis of firm performance

Abstract

Abstract-Multi-criteria decision making methods are extensively used in the decision making problems. Decision making is the activity of a person that helps obtain responses to the questions posed by a stakeholder in a decision process. This study compares the financial performance of seven companies in the banking sector listed on the National Stock Exchange (NSE) for years from 2014 to 2017. The PROMETHEE, AHP and TOPSIS methods are used independently to evaluate the financial performance and to decide on the best performing firm for the four year period. The evaluated ranks are then compared with the actual ranks (based on investments) using Spearman's rank correlation. The calculation of financial performance measures is based on four main criteria and nine sub-criteria. Using the following methods, our study suggests that Punjab National Bank (PNB) has the best financial performance as compared to other companies.

BİST Holding ve Yatırım Endeksinde Yer Alan Şirketlerin Finansal Performanslarının MCDM Yöntemleri İle Ölçümü

“…As a result of the study, the performance results of the companies are listed by using the reference point approach and full product form methods. Sharma (2018) evaluated the financial performance of 7 companies traded in the banking sector in the National Stock market (NSE) between 2014 and 2017. AHP analysis was used to calculate the weights of the criteria used in the study.…”