Intrinsic Value Prediction of Companies of the Stock Market Using Fundamental Data

Abstract

"It is a challenging task to invest in the stock market without losing capital. The success of the investment will depend on the ability to select a good company and the ability to predict the fair-value of the company. One has to do a lot of research and calculations to decide confidently, which company and at what price to invest. For that, one has to have a sound knowledge of the stock market and its current situation. However, new investors and part-time investors will not have the required knowledge and time to achieve the above considerations. As a solution to solve the issue of finding a good company and determining at what price to enter in the Colombo Stock Market; this value prediction model is introduced. This is a system which will use machine learning to predict the two fundamental factors P/E Ratio and Earning per Share to get the intrinsic value of a company that is suitable for stock market investment. "