Analyzing the Intrinsic Value of Common Stocks

The intrinsic value of common stocks is analyzed by combining The Analytic Hierarchy Process (AHP) and principal component analysis. The method is applied to several stocks as an illustration and is found to be dependable at computing the intrinsic values of stocks. For those small investors who make investment decisions based on intrinsic values, the result of this paper may be used as a guidance. According to example of calculating used, level analysis and factor method combined together to analyze can calculate the inherent value score of the stock well, it is a feasible analytical method.