The use of fuzzy logic and expert systems for rating and pricing firms: a new perspective on valuation
AbstractThis paper presents an expert system aimed at evaluating firms and business units. It makes use of fuzzy logic and integrates financial, strategic, managerial aspects, processing both quantitative and qualitative information. Twenty-nine value drivers are explicitly taken into account and combined together via “if-then” rules to produce an output. The output is a real number in the interval [0,1], representing the value-creation power of the firm. The system may be used for rating, ranking and pricing firms as well as for assessing the impact of managers’ decisions on value creation and as a tool of corporate governance.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 11958.
Date of creation: 10 May 2005
Date of revision:
Publication status: Published in Managerial Finance 11.33(2007): pp. 836-852
Firm valuation; fuzzy logic; expert system; acquisition; rating; pricing;
Other versions of this item:
- Stefano Malagoli & Carlo Alberto Magni & Giovanni Mastroleo, 2007. "The use of fuzzy logic and expert systems for rating and pricing firms: A new perspective on valuation," Managerial Finance, Emerald Group Publishing, Emerald Group Publishing, vol. 33(11), pages 836-852.
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
- C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Carlo Alberto Magni, 2009.
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PROYECCIONES FINANCIERAS Y VALORACION, MASTER CONSULTORES
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- Magni, C. A. & Mastroleo G. & Facchinetti, G., 2001. "A Fuzzy expert system for solving ReaL-Option decision processes," Fuzzy Economic Review, International Association for Fuzzy-set Management and Economy (SIGEF), International Association for Fuzzy-set Management and Economy (SIGEF), vol. 0(2), pages 51-73, November.
- Magni, Carlo Alberto, 2004.
"Rating and ranking firms with fuzzy expert systems: the case of Camuzzi,"
MPRA Paper, University Library of Munich, Germany
5889, University Library of Munich, Germany.
- Magni, Carlo Alberto, 2007. "Rating and ranking firms with fuzzy expert systems: the case of Camuzzi," MPRA Paper, University Library of Munich, Germany 5646, University Library of Munich, Germany.
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