Application of Analytic Hierarchy Process (AHP) in Evaluation of Investment Value of Sub-New Shares

Abstract

With the acceleration of the issue of new shares in the A share market, the number of IPOs is increasing day by day, so that the majority of investors have more investment opportunities. However, when the sub-new stock has high returns, it is also accompanied by high risks. How to choose among many stocks becomes a difficult problem for investors. This paper selects 10 sub-new stocks in small and medium-sized board market. The analytic hierarchy process (AHP) is used to evaluate the investment value, such as operation ability, growth ability and expansion ability. It is concluded that the comprehensive ranking improves the return on investment effectively. This is a new application of AHP in the field of securities investment, and it also provides a new method for investors to make reasonable decisions