Estimation of Future Levels and Changes in Profitability

One of important related subject to stock market is predicting future profitability in accepted companies. And this significantly considered by financial analyzers. One of their techniques in this way is financial ratios and profitability ratio is more common among these ratios. Therefore, in this paper we test some techniques to predict futureprofitability. In so doing, the data are collected in 2009-2013 for 50 companies accepting Tehran stock market. Theresults show that there is meaningful relationship between company’s relative status in industry and predict of profitability of next year. Also, separation of stockholder rights to financial and operational parts leads to obtain useful information to predict their next year rights.

Future Profitability Predict; Profitability Factors