A fundamental analysis-based method for stock market forecasting

Fundamental analysis of stocks links financial data to firm value in two consecutive steps: a predictive information link tying current financial data to future earnings, and a valuation link tying future earnings to firm value. At each step, a large number of causal factors have to be factored into the evaluation. To affect these calculations, we propose a new two-stage multi-criteria procedure, drawing on the techniques of data envelopment analysis. the findings highlight that investors in the Indian market often combine both analyses, leveraging fundamental insights for long-term investment decisions and technical indicators for short-term market movements.