• Dr.R.NALINI
• Abinaya G

This study investigates the predictive capacity of financial ratios in forecasting stock price trends of firms listed on the National Stock Exchange (NSE). Financial ratios including earnings per share (EPS), return on assets (ROA), return on capital employed (ROCE), price-to-earnings ratio (PER), and price-to-book value (PBV) are analyzed alongside NSE and NYSE indices were taken for the study. Data spanning from 2014 to 2023 is collected from annual financial reports and Historical stock prices collected from NSE. Classical assumption tests, multicollinearity assessments, correlation analyses, regression modeling, and structural equation modeling (SEM) are employed. The findings highlight significant relationships between financial ratios and stock prices, with P/E Ratio were emerging as a significant predictor. The Non-Linear model exhibits a strong fit, explaining 97% of the variability in stock prices, and SEM reveals a high coefficient of determination (R² =0.99 which revealed 99.6% strength between Financial Ratios and Stock prices). Overall, the study underscores the importance of financial ratios in predicting stock price trends and provides valuable insights for investors, analysts, and policymakers.

NSE, Stock price, ROA, ROCE, PER, PBV, Non-Linear Model, and Structural Equation modeling (SEM)

" Analyzing Non-Linear Trajectory of Stock price: Predictive revelations from accounting information", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.11, Issue 4, page no.g282-g290, April-2024, Available :http://www.jetir.org/papers/JETIR2404635.pdf

" Analyzing Non-Linear Trajectory of Stock price: Predictive revelations from accounting information", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.11, Issue 4, page no. ppg282-g290, April-2024, Available at : http://www.jetir.org/papers/JETIR2404635.pdf