Author(s)

Leizu Zhang, Yuning Wang

Corresponding Author

Yuning Wang

ABSTRACT

Growth-oriented investment is the best choice for medium and long-term investors, which is mainly suitable for investors with financial objectives of more than five years. Based on the principle of stock price model and optimal control algorithm, the mathematical model of stock price is established, and the fluctuation sequence of stock price is tested and analyzed, and the stock price model is analyzed and processed by optimal control algorithm. Considering the robust criteria from two aspects of data representation and method selection, a value stock selection strategy based on sequencing mechanism is established. Theoretical analysis shows that the dividend policy without dividend distribution in the growth period is in line with the maximization of stock value, and the value of growth stocks is related to the profitability, profitability sustainability (length of forecast period), capital cost and capital premium at the end of forecast period.

KEYWORDS

Optimal control algorithm, Growth stocks, Selection method, Investment strategy