Differences In Intrinsic Value With Stock Market Prices Using The Price Earning Ratio (Per) Approach As An Investment Decision Making Indicator (Case Study Of Manufacturing Companies In Indonesia Period 2016 - 2017)

Authors

  • Ardy Indra Lekso Wibowo
  • Aditya Dwiansyah Putra Shipbuilding Institute of Polytechnic Surabaya
  • Murni Sari Dewi Shipbuilding Institute of Polytechnic Surabaya
  • Denny Oktaviana Radianto Shipbuilding Institute of Polytechnic Surabaya

DOI:

https://doi.org/10.34306/att.v1i1.23

Keywords:

Intrinsic Value, Invenstment Decision, Price Earning Ratio

Abstract

An investor must be able to consider all kinds of steps that will be taken or that will be carried out, assessing stocks - shares that will provide optimal benefits in making an investment decision. By analyzing the intrinsic value of the price of a company's stock, investors can assess the fairness of the stock price. The method used to analize intrinsic value is fundamental analysis using the Price Earning Ratio (PER) approach. The samples to be taken in this research are manufacturing companies in Indonesia which are listed on the Indonesia Stock Exchange (IDX) for the period 2016 - 2017 with certain criteria. The results of this research will show that the shares of companies listed are in overvalued, undervalued or correctly valued conditions. So investors can decide to buy, hold or sell their shares.

References

[1] anonymus, 2018. financial statements for the 2017 period of manufacturing companies. Accessed on 10 January 2019. from www.idx.co.id
[2] anonymus, 2017. financial statements for the 2016 period of manufacturing companies. Accessed on 10 January 2019. from www.idx.co.id
[3] Edison, 2017. Manufacturing companies on the IDX. Retrieved 10 January 2019. From www.sahamok.com
[4] Sukmawati, E. E., & AR, M. D. (2013). FUNDAMENTAL ANALYSIS WITH THE PRICE EARNING RATIO (PER) APPROACH TO ASSESS THE RIGHTS OF SHARE PRICES AND INVESTMENT DECISIONS (Study of Cosmetic Companies and HouseholdPurposes Listing on the Indonesia Stock Exchange Period 2009-2011). Business
Administration Journal, 2 (2), 21-29.
[5] Sunariyah, 2006. Introduction to Market Knowledge Capital. Fifth edition. Yogyakarta: UPP STIM YKPN.
[6] Tandelilin, Eduardus. 2010. Portfolio and Investment Theory and Application. First edition. Yogyakarta: KANISIUS.

Additional Files

Published

2019-03-28

How to Cite

Wibowo, A. I. L., Putra, A. D., Dewi, M. S., & Radianto, D. O. (2019). Differences In Intrinsic Value With Stock Market Prices Using The Price Earning Ratio (Per) Approach As An Investment Decision Making Indicator (Case Study Of Manufacturing Companies In Indonesia Period 2016 - 2017). Aptisi Transactions on Technopreneurship (ATT), 1(1), 82–92. https://doi.org/10.34306/att.v1i1.23

Issue

Vol. 1 No. 1 (2019): March

Section

Articles

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