PRASIAS: A New Preference Ranking Model for Comparing Organizational Performance Under Disruption

This paper aims to investigate the impact of COVID-19 on the organizational performance of automotive, fast-moving consumer goods, consumer durables, and healthcare during both pre-and post-pandemic periods, forming a dual objective. To achieve this, the paper uses a set of market price-based ratios including Price-to-Earnings (P/E), Price-to-Book value (P/B), Price-to-Sales (P/S), and Price-to-Cash Flow (P/CF), along with market risk, as indicators for performance comparison. The scope of the assessment is limited to the financial performance analysis. The paper also attempts to relate performance to long-term growth prospects measured by Tobin’s Q model. Second, the paper proposes a Multi-criteria Decision-Making (MCDM) model called Preference Ranking based on Similarity to Ideal Average Solutions (PRASIAS) to compare the organizations. PRASIAS is a novel extension of the recently introduced Preference Ranking on the Basis of Ideal-Average Distance (PROBID) method. PRASIAS uses similarity measures in terms of inclination angle and considers positive and negative ideal solutions, as well as the average solution, to provide a comprehensive decision-making framework. To determine criteria weights, the paper applies a recently developed model called Logarithmic Percentage Change-driven Objective Weighting (LOPCOW). The paper validates the results by comparing them with the outcomes of other MCDM methods, and it also performs sensitivity analysis to examine the stability of the ranking. From the results, it is evident that there are some variations in the comparative positions over the years. Cipla Ltd., Dr. Reddy’s Laboratories Ltd., Bajaj Auto Ltd., and Britannia Industries Ltd. secured the top positions. P/E ratio remains a dominant influencing factor, as indicated by the calculated weights. A positive association is observed between financial stability and the comparative ranking of the organizations, while Tobin’s Q has not proven to be a significant influencer. It is also noteworthy that COVID-19 has impacted the performance of these entities.