In this paper the compound-forecasting method is discussed. The compound-forecasting method is one of the hotspots in the current predication. Firstly, the compound-forecasting method is introduced and various existing compound-forecasting methods arediscussed. Secondly, the Artificial Neural Network (ANN) is brought in compound-prediction research and a nonlinear compound-prediction model based on ANN is presented. Finally, inorder to avoid irregular weight, a new method is presented which uses principal component analyses to increase the availability of compound-forecasting information. Higherforecasting precision is achieved in practice.