Prediction of Stock Values Based on Fuzzy Logic using Fundamental Analysis

Abstract

Due to high fluctuations in the stock market, it is difficult to predict the future movement of stock prices. Many researchers have developed technical tools to predict future price based on past patterns. However, every stock has an Intrinsic value that do not depend on market price. The approach works through phases as Data Collection, Feature Processing and Learning. The stock value is produced by Dividend Discount Model. The quality and quantity factors of stocks are mapped through fuzzy logic. Different formulas based on fundamental strategies of stock valuation gives different resulting values, which imply different degrees of inference. General fuzzy IF-THEN rules are applied. The result of approach provides a guideline about actual value of stock. System gives emphasis on value rather than price which help Investors to take decision.