REVOLUTIONIZING INVESTMENT STRATEGY: A HOLISTIC APPROACH TO FIRM VALUATION USING A DIVIDEND DISCOUNT MODEL
Kata Kunci:
dividend discount model, intrinsic value, overvalue, undervalueAbstrak
This paper studied the investment decision references by comparing the market price and the firm's intrinsic value in the PEFINDO index from 2018-2021. The market value of the firms measured firm valuation, and intrinsic value was measured by the DDM model. The results showed that over 2018-2021, only three companies were consistently listed in the PEFINDO index, and all samples showed undervalued stocks. This indicated that investors could have gained more by buying stocks from the sample firms.
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