TAPPING INTO LONG TERM VALUE: A COMPREHENSIVE OVERVIEW OF BIST 30 INDEX COMPANIES' FUTURE POTENTIAL

Year 2023, , 1 - 5, 15.01.2024

Zekeriya Bıldık , Kaya Tokmakçıoğlu

https://doi.org/10.17261/Pressacademia.2023.1843

Abstract

Purpose - This article aims to establish a correlation between the valuation potential of companies listed on the Borsa Istanbul 30 index and their enduring competitive advantage, focusing on microeconomic Key Performance Indicators (KPIs) and corporate governance dimensions.
Methodology - The study conducted an extensive analysis of the financial statements of BIST 30 companies spanning three years. Employing a unique approach utilizing Triangular Spherical Fuzzy Sets, it assessed the significance of these KPIs and corporate dimensions, chosen for their capacity to handle imprecise data. Three experts were consulted over three years to assign importance scores to each indicator, which were then used to calculate cumulative scores for individual stocks.
Findings - The application of the Triangular Spherical Fuzzy Sets method provided a comprehensive understanding of these indicators, ena-bling a nuanced evaluation of the cumulative score for each stock. Notably, a clear distinction emerged between service and manufacturing companies, suggesting a potential glass ceiling effect that favors production-oriented enterprises. The observed patterns in certain stocks aligned with the framework developed in this study.
Conclusion - This study illustrates the use of fuzzy logic in evaluating stock valuation potential, revealing insights into their sustained growth prospects. Aligned with Warren Buffett's value investing principles, it advances modeling approaches within the Turkish public stock exchange. Offering a unique perspective on BIST 30 stocks' long-term valuation potential, it provides valuable insights for investors, stakeholders, and analysts in the dynamic finance landscape. Emphasizing the understanding of companies' enduring competitive strength in an evolving market is pivotal.

Keywords

Value investing, triangular spherical fuzzy sets, long term competitive advantage, corporate governance

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