Research Article

MULTICRITERIA DECISION SUPPORT FOR STOCK SELECTION: AN IN-DEPTH COMPARISON OF ELECTRE III, TOPSIS, AND PROMETHEE

ISSN: 3067-2562

DOI Prefix: 10.5281/zenodo.

Authors: Amina Zainab Bello, Chinedu Emeka Nwosu
Published: Volume 12, Issue 1 (2025)
Date: July 1, 2025

Abstract

This paper explores the use of three multicriteria decision analysis (MCDA) methodsβ€” ELECTRE III with veto, TOPSIS, and PROMETHEEβ€”in ranking stocks within a sector. Each method evaluates stocks based on fundamental, performance, and technical criteria to identify top performers. ELECTRE III with veto emphasizes robustness, TOPSIS focuses on balanced performance, and PROMETHEE customizes rankings based on specific preferences. The analysis finds common high-ranking stocks like Apple, Universal Display, and Microsoft across all methods, while each method also uniquely highlights different stocks. The paper demonstrates how these MCDA methods provide comprehensive insights for informed stock investment decisions.