Authors : Jiah-Shing Chen and Pin-Chen (P.C.) Lin
Abstract: Stock valuation plays an important role in stock selection for fundamental investors. The Efficient Market Hypothesis (EMH) emphasizes that the intrinsic value of a stock will be reflected by its market price. Previous studies on stock valuation estimate a stock`s value as a single-valued number. Different models generate different estimates on the same stock. This may imply that the value of a stock should be multi-valued rather than single-valued. This study develops an intelligent stock valuation model to produce a multi-valued price for a stock by generalizing genetic programming to Fuzzy genetic programming. Since the stock value is estimated by a Fuzzy expression tree which calculates to a trapezoidal Fuzzy number, the stock value becomes multi-valued. In addition, the resulting trapezoidal Fuzzy stock value induces a natural trading strategy which can readily be executed and evaluated.
Jiah-Shing Chen and Pin-Chen (P.C.) Lin , 2004. Fuzzy Genetic Programming Approach to Stock Valuation . Asian Journal of Information Technology, 3: 197-201.