“THE APPLICATION OF CAPITAL ASSET PRICING MODEL FOR DETERMINING INVESTMENT DECISIONS BASED ON UNDERVALUED OR OVERVALUED SHARED STOCK” (Case Study in the Plantation Sub Sector in the Indonesia Stock Ecxhange Period of January 2014-December 2016)

Yanis, Anatasya
Hutasoit, Posma S.J.K.
Lumbantoruan, Rutman

Fundamental Management Journal
Vol 4 No 1 (2019): pISSN : 2540-9816 EDISI CETAK

This study aims to help investors in determining stock investment decisions by applying the CAPM method in determining stocks classified undervalued or overvalued based on the level of risk and the rate of return. This research uses quantitative descriptive approach method. The result of this research shows that from the stock of 15 companies of plantation sub sector which become the sample of research, there are seven stocks of companies classified as undervalued ie ANJT, BWPT, DSNG, LSIP, SGRO, SIMP, TBLA shares with investment decision ie buying shares and eight companies classified overvalued ie AALI, GZCO, JAVA, MAGP, PALM, SMAR, SSMS, UNSP, with the investment decision that is selling shares. Keywords: CAPM, systematic risk, rate of return, undervalued, overvalued.