Evaluation Of Stock Through Fundamental Analysis With The Dividend Discount Model (DDM) Approach

Authors

  • Nurni Arrina Lestari Universitas Muhammadiyah Sukabumi
  • Antony Antony Universitas Muhammadiyah Sukabumi
  • Alhidayatullah Alhidayatullah Universitas Muhammadiyah Sukabumi

DOI:

https://doi.org/10.54099/ijibr.v2i1.499

Keywords:

Dividend Discounted Model, Stock Price Appraisal, Investment Decision

Abstract

The goal of this research is to determine the fairness of stock prices by looking at the intrinsic value of shares in the healthcare industry from 2017 to 2021. Investors use this assessment of the fairness of the share price to choose whether to sell, hold, or purchase shares. The Dividend Discounted Model (DDM) with a Constant Growth Model was used for the analysis. The Dividend Discounted Model (DDM) is used to compare the stock's intrinsic value to its market value to determine the intrinsic value of shares. This value is calculated by anticipating future dividend payments. The Healthcare Sector Company on the Indonesia Stock Exchange is the subject of this kind of descriptive research. Nine companies were chosen as samples using the purposive sampling strategy. Shares of DVLA, KLBF, MERK, MIKA, PEHA, PRDA, SIDO, and TSPC were found to be undervalued in the outcomes. On the other hand, HEAL shares was found overvalued. For potential investors in DVLA, KLBF, MERK, MIKA, PEHA, PRDA, SIDO, and TSPC shares, the best investment decision is to buy shares in these companies before the market price of these shares rises. Meanwhile, investors who already own shares in these companies should hold the company's shares and increase their share ownership with the assumption that the share price will rise in the future. Furthermore, potential investors should not buy HEAL company shares and investors who already own the company shares should immediately sell the company shares in order to get capital gains.

References

Affandy, C. (2019). Stock Valuation Menggunakan Dividend Discounted Model (DDM) Dalam Pengambilan Keputusan Investasi Pada Bank Pembangunan Daerah yang Terdaftar di Bursa Efek Indonesia. The Manager Review, 1(1), 57-73.

Dewi, R. C. (2014). Analisis Dividend Discounted Model (Ddm) Untuk Penilaian Harga Saham Dalam Pengambilan Keputusan Investasi (Studi Pada Perusahaan Sub Sektor Semen Yang Tercatat Di Bursa Efek Indonesia Tahun 2009-2013) (Doctoral dissertation, Brawijaya University).

Hanafi, M. M. (2018). Manajemen Keuangan (Edisi 1). Yogyakarta, Indonesia: BPFE.

Hutomo, A. A., Topowijono, T., & Nuzula, N. F. (2016). Analisis Dividend Discounted Model (Ddm) Untuk Valuasi Harga Saham Sebagai Dasar Keputusan Investasi (Studi Pada Perusahaan Yang Terdaftar Di Indeks Lq-45 Periode 2012-2014) (Doctoral dissertation, Brawijaya University).

Iskamto, Dedi, Puspa Liza Ghazali, and Asyraf Afthanorhan. 2020. “A Conceptual Framework for Entrepreneur Competence and Entrepreneur Performance: The Role of Gender.” The Journal of Management Theory and Practice (JMTP) 1(1):1–4. doi: 10.37231/jmtp.2020.1.1.14.

Iskamto, Dedi, Puspa Liza Ghazali, Asyaf Aftanoorhan, and Selfira Narti. 2020. “Effect of Occupational Safety And Health on Performance: An Empirical Investigation.” International Journal of Islamic Studies and Social Sciences 1(3):20.

Iskamto, Dedi. 2015. “‪Anomali Pasar Pada Bursa Efek Indonesia‬.” Jurnal Tepak Manajemen Bisnis VII(3).‬

Iskamto, Dedi. 2022. “Analysis of The Impact of Competence on Performance: An Investigative In Educational Institutions.” Asean International Journal of Business 1(1):68–76. doi: 10.54099/aijb.v1i1.74.

Jatmiko, Dadang Prasetyo. 2022. “Event Study Analysis of The Covid-19 Outbreak On Stock Prices Listed on The Indonesia Stock Exchange.” Adpebi International Journal of Multidisciplinary Sciences 1(1):72–79. doi: 10.54099/aijms.v1i2.221.

Kamaruddin, Kamaruddin, Akhmad Wahyudi, and Ilham Gani. 2022. “The Effect Of Results Share Level, Third Party Funds, Non Performing Financing On Results-Based Financing Volume In Sharia Banking In Indonesia.” Adpebi International Journal of Multidisciplinary Sciences 1(1):155–65. doi: 10.54099/aijms.v1i1.261.

Kosasih, D.T. (2021). Melihat Potensi Saham Sektor Kesehatan hingga Akhir 2021. Diakses pada 05 Agustus 2021, dari https://www.liputan6.com/saham/read/4698321/melihat-potensi-saham-sektor-kesehatan-hingga-akhir-2021.

Liyas, Jeli Nata, and Fajri Adrianto. 2022. “Determination of Corporate Action Announcement and Market Reaction: : Stock Price and Stock Liquidity Before and Afte.” International Journal of Islamic Business and Management Review 2(1):117–27. doi: 10.54099/ijibmr.v2i1.133.

Pengestika, T. N., & Christianti, A. (2021). Valuasi Saham dan Pengambilan Keputusan Investasi: Perbandingan Metode Absolute dan Metode Relative. Jurnal Bisnis dan Manajemen, 8(2), 291-299.

Rudianto, Dudi, Aryanti Ratnawati, Bambang Susanto, and Tri Pujadi Susilo. 2022. “Determinants of the Underpricing Rate of Stocks: Study on Companies Conducting IPO on the IDX.” Adpebi International Journal of Multidisciplinary Sciences 1(1):80–91. doi: 10.54099/aijms.v1i2.227.

Setia, V. V. (2018). ANALISIS PENILAIAN HARGA SAHAM MENGGUNAKAN METODE DIVIDEND DISCOUNT MODEL (DDM) SEBAGAI DASAR PENGAMBILAN KEPUTUSAN INVESTASI (Studi pada Perusahaan yang termasuk dalam Indeks LQ-45 di Bursa Efek Indonesia Tahun 2013-2015). Aplikasi Administrasi: Media Analisa Masalah Administrasi, 20(1), 26-38.

Sukmadewi, Refni, Dewi Sartika, Mulyani Rodi Muin, and Deviana Sofyan. 2021. “The Effect of Liquidity Ratio and Solvency Ratio on the Profitability of Plantation Subsector Companies Listed on the Indonesian Stock Exchange.” Husnayain Business Review 1(1):69–77. doi: 10.54099/hbr.v1i1.23.

Sunaryo, Deni. 2022. “Stock Return Problems In The Coal Sector: A Case Study Of The Use Of Price Earning Ratio And Firm Size Moderation.” Asean International Journal of Business 1(2):104–23. doi: 10.54099/aijb.v1i2.139.

Syari, A. S. (2018). Evaluasi Kondisi Saham Melalui Analisis Fundamental Dengan Metode Dividend Discount Model (Ddm) Terhadap Keputusan Investasi Pada Perusahaan Sub Sektor Pulp and Paper Yang Terdaftar Di Bei Periode 2011-2015. Jurnal Ekonomi STIEP, 3(2), 1-13.

Tandelilin, E. (2017). Pasar Modal Manajemen Portofolio & Investasi. Yogyakarta: Kanisius.

Ulfa, Maria, and Mohammad Noor Salim. 2022. “Determinants Dividen Payout Ratio and Its Impact on Decitions Investment: A Cas Study on a Mining Company Listed in Indonesia Stock Exchange.” International Journal of Management and Business Applied 1(2):57–67. doi: 10.54099/ijmba.v1i2.280.

Yuliah, Y., Triana, L., & Lesmana, I. S. (2019). ANALISIS NILAI SAHAM DENGAN DIVIDEND DISCOUNT MODEL (DDM) (Studi kasus Perusahaan Tekstil Dan Garmen Yang Terdaftar Di Bursa Efek Indonesia Tahun 2018). Jurnal Manajemen STIE Muhammadiyah Palopo, 5(2), 9-13.

Downloads

Published

2023-03-09

How to Cite

Lestari, N. A., Antony, A., & Alhidayatullah, A. (2023). Evaluation Of Stock Through Fundamental Analysis With The Dividend Discount Model (DDM) Approach. International Journal of Indonesian Business Review, 2(1), 85–95. https://doi.org/10.54099/ijibr.v2i1.499

Issue

Section

Articles