Authors: Dimitras A.

Abstract:

The evaluation of stocks and the selection of the ‘best’ ones is an important step in the process of constructing an optimal portfolio. This study proposes the multicriteria method UTADIS (UTilités Additives DIScriminantes) for the sorting of stocks in categories incorporating, not only quantitative measures, but also the knowledge as well as the preferences of experts. The study illustrates the application of the method on the construction industry stocks in Athens Stock Exchange, using the financial characteristics of the companies. The model developed is evaluated according to its usefulness in a decision process. Further research and the application of the method in other industries’ stocks can establish the method as an important tool in stock evaluation and the relative decision making process.