Journal of Information Systems and Informatics
Vol 6 No 3 (2024): September

Stock Grouping Based on Price Earnings Ratio and Price Book Value Using K-Medoids Algorithm

Abdillah, Muhammad Oemar (Unknown)
Putri, Raissa Amanda (Unknown)



Article Info

Publish Date
18 Sep 2024

Abstract

Investing involves allocating funds to achieve optimal returns by evaluating opportunities and managing risks in asset acquisition. Recently, many news reports have highlighted issues in the Indonesian capital market, such as stock investors using online loan funds for trading, which often leads to debt. This research aims to apply the K-Medoids algorithm for stock clustering, enabling investors to select fundamentally sound stocks based on the Price-Earnings Ratio (PER) and Price-Book Value (PBV). The K-Medoids method results show that Cluster 1 includes 93 stocks with moderate PER and PBV values. Cluster 2 comprises 91 stocks with the lowest PER and PBV values. Cluster 3 contains 113 stocks with the highest PER and PBV values. Developing an information system that classifies stocks based on PER and PBV can help investors analyze and make investment decisions more effectively.

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Journal Info

Abbrev

isi

Publisher

Subject

Computer Science & IT

Description

Journal-ISI is a scientific article journal that is the result of ideas, great and original thoughts about the latest research and technological developments covering the fields of information systems, information technology, informatics engineering, and computer science, and industrial engineering ...