Corporation Selection in Terms of Payout, Growth, Profitability and Valuation Indicators

Abstract

Investment strategy and corporation selection are the important measures to help investors to beat the market by using their limited capital. Financial indicator measure is used as a common tool in corporation stock selection to help the investors to build their portfolio. This paper covers the data from 2015 to 2021 to examine the key financial ratios which include payout, growth, profitability, and corporation valuation of Procter & Gamble and its competitors in the industry. After the comparison of payout policy, profitability, capitalization and growth, PG will be the best corporation to invest. However, the research is limited due to the short run time and ignores the business cycle factors (e.g., inflation and acquires and merges). In the future research, it is suggested that a more complicated model would be used to help investors to examine more indicators. Overall, PG is one optimal investment decision in the industry which could help investors to win in the short run decision. These results shed light on corporation selection, portfolio management and financial ratio analysis in the real stock market practice.