Jurnal Riset Bisnis dan Manajemen
Vol. 10 No. 2 (2017): Edisi Agustus

HARGA SAHAM DENGAN METODE DIVIDEND DISCOUNT MODEL DAN PRICE TO BOOK VALUE

Resti Hasanah (Universitas Pasundan)
Ellen Rusliati (Universitas Pasundan)



Article Info

Publish Date
29 Sep 2017

Abstract

This study aims to analyze the company’s intrinsic value using the dividend discount model (DDM) and price to book value (PBV) of companies registered in LQ 45, in 2010 - 2014. The sample selected by the criterion is always listed in the LQ 45 and pay dividends. The method used is descriptive and quantitative and the measurement accuracy with root mean squared error (RMSE). The results showed that intrinsic value DDM method is more accurate than PBV with an average value of DDM RMSE is smaller than the average RMSE PBV. DDM method is more suitable for companies with growth consistent and at the stage of maturity and always pay dividends. PBV method would be better to assess the company’s stock with similar industries or sectors, so the obvious comparison is cheap or expensive stocks.

Copyrights © 2017






Journal Info

Abbrev

jrbm

Publisher

Subject

Economics, Econometrics & Finance

Description

The journal’s aim is to foster greater understanding of advancements in all areas of business and management by providing a platform to the scholars for disseminating their research works. The journal’s welcomes empirical and theoretical research papers and literature reviews from academicians, ...