Analysis of Stock Value in the Science and Technology Innovation Board Market: A Principal Component Analysis Approach

Abstract

The factors influencing stock returns have been extensively studied in the current academic sphere. In this study, the factor analysis method is employed to assess the investment value of stocks in the Science and Technology Innovation Board market (STAR Market) using indicators such as asset-liability ratio, current ratio, quick ratio, gross profit amount, YoY growth rate of net assets, asset return rate A, return on equity ratio ROEA, operating net profit margin, earnings per share of net assets, sales operating profit margin, and YoY growth rate of total assets. Factor scores are derived using principal component analysis. The obtained factor scores are ranked in descending order, revealing that Juchen Corporation holds a factor score of 1.11, ranking first among all companies and demonstrating the highest investment value. Following closely are EastMicro Semiconductor and Baochu Electronics. Additionally, this paper summarizes the stock performance of 20 other companies, offering investors a reference for value-based investment decisions. The quantitative findings of this study facilitate informed decision-making for investors, serving as a valuable reference for their investment strategies.