Analysis of Intrinsic Value of Shares with DDM and PER Approach as Basis for Investment Decisions

DOI

10.2991/978-94-6463-640-6_11How to use a DOI?

Keywords

Dividend Discount Model; Investment Decision; Intrinsic Value of Stock; Price Earning Ratio

Abstract

This research includes quantitative descriptive research aimed at analyzing the intrinsic value of stocks as well as providing advice on investment decisions, with the object of the research being companies that are listed in the LQ45 index, using DDM and PER approaches. Sampling is done with purposive sampling techniques. The analysis results indicate that 16 companies are undervalued. The investment decision that can be considered is to buy the shares. While one company's stock is in an overvalued state, so the recommended investment decision is to sell the stock.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sania Christyn Br Bangun
AU  - Bambang Hendrawan
PY  - 2024
DA  - 2024/12/31
TI  - Analysis of Intrinsic Value of Shares with DDM and PER Approach as Basis for Investment Decisions
BT  - Proceedings of the  Sixth International Conference on Applied Economics and Social Science (ICAESS 2024)
PB  - Atlantis Press
SP  - 132
EP  - 143
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-640-6_11
DO  - 10.2991/978-94-6463-640-6_11
ID  - Bangun2024
ER  -