Research Article
The Strategy of Investment Decision Making Based on Fundamental Analysis to Evaluate The Fairness Stock Price
@INPROCEEDINGS{10.4108/eai.8-10-2018.2288673, author={Santy Mayda Batubara and Fenni Supriadi and Ryani Yulian and Hazmanan Khair}, title={The Strategy of Investment Decision Making Based on Fundamental Analysis to Evaluate The Fairness Stock Price}, proceedings={Proceedings of the 1st International Conference on Economics, Management, Accounting and Business, ICEMAB 2018, 8-9 October 2018, Medan, North Sumatra, Indonesia}, publisher={EAI}, proceedings_a={ICEMAB}, year={2019}, month={10}, keywords={intrinsic value market value price earning ratio and closing stock price}, doi={10.4108/eai.8-10-2018.2288673} }- Santy Mayda Batubara
Fenni Supriadi
Ryani Yulian
Hazmanan Khair
Year: 2019
The Strategy of Investment Decision Making Based on Fundamental Analysis to Evaluate The Fairness Stock Price
ICEMAB
EAI
DOI: 10.4108/eai.8-10-2018.2288673
Abstract
The purpose general this study are identify and analysis through fundamental analysis as the strategy of investment decision making in the capital market. This research method have used secondary data with purposive sample technique, sample of this study consist of 9 sector index companies for 3 periods from 2015 till 2017 and type this study included of quantitative descriptive research. The analysis used (1). Financial analysis of compare intrinsic value through the Price Earning Ratio approach to market value based on the closing stock price; and (2). Statistical analysis by different test through “the Independent sample t test”. The finding of this study that (1) Condition of 8 sector index companies are "overvalued" category, it caused of the intrinsic value is lower that market value. However, the financial sector is "undervalued" category, it caused the intrinsic value is higher than market value. (2) There is "a difference" betwen intrinsic value to market value and the hypothesis study is accepted. It mean the evaluation of investor should not only to reviewed from the financial factor, but also necessary of various factor.