Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

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An Analysis of Determining the Most Valuable Company Based on Financial Analysis and Principal Component Analysis Methods

Authors
Zhe Ji1, *, †, Andy Rui Chen Lu2, †, Jingyi Wang3, †, Yijin Sha4, †
1School of Business, Nanjing University, Nanjing, Jiangsu 210046, China
2Stern School of Business, New York University, New York, New York 10012, The United States
3Questrom School of Business, Boston University, Boston, Massachusetts 02215, The United States
4UT College of Liberal Arts, The University of Texas at Austin, Austin, Texas, 78712, The United States
†

These authors contributed equally.

*Corresponding author. Email: 181098107@smail.nju.edu.cn
Corresponding Author
Zhe Ji
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.451How to use a DOI?
Keywords
Principle Component Analysis methods; financial factors; profitability; stock price
Abstract

There are four profitable and valuable companies, Oshkosh Corporation, Intel Corporation, Arena Pharmaceutical Inc., and the Walt Disney Company, and we are choosing the most valuable one for investors to invest in. Among these four companies, the most valuable one should be determined carefully. This paper provides a comprehensive analysis and evaluation framework for investors to determine the best performing and valuable stock for investment. We study the financial performance and profitability of the four companies from two perspectives: core financial factors and the Principle Component Analysis measuring method. In this study, we calculate and analyze the cheapness, sales growth, profitability, and dividends of each company, and make a decision of the best performing company in each perspective. The result leads to our conclusion that the overall best performing company is Oshkosh Corporation. In addition, this paper further analyzes four companies’ performance by the Principle Component Analysis method in order to examine and strengthen our previous finding that Oshkosh Corporation is the most valuable company for investors to invest in.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
978-94-6239-483-4
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.451How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Zhe Ji
AU  - Andy Rui Chen Lu
AU  - Jingyi Wang
AU  - Yijin Sha
PY  - 2021
DA  - 2021/12/15
TI  - An Analysis of Determining the Most Valuable Company Based on Financial Analysis and Principal Component Analysis Methods
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 2770
EP  - 2778
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.451
DO  - 10.2991/assehr.k.211209.451
ID  - Ji2021
ER  -