The Journal of Financial, Accounting and Economics
Vol. 2 No. 1 (2025)

Factors Influencing Stock Valuation: A Systematic Review of the Role of Market Fundamentals and Sentiment

Hafidz, Nida Shaffitry (Unknown)



Article Info

Publish Date
31 Jan 2025

Abstract

Stock valuation is a crucial aspect of investment decision-making, influenced by both company fundamentals and market sentiment. This study aims to systematically examine the influence of these two factors through a Systematic Literature Review (SLR) approach on literature published between 2020 and 2024 in the ScienceDirect database. The analysis of 10 articles shows that fundamental indicators such as financial performance, financial ratios, and revenue growth significantly influence stock valuation. However, market sentiment, including investor opinion, news coverage, and social media activity, also plays a significant role in shaping stock prices, often leading to deviations from fundamental values. This study emphasizes the importance of an approach that considers the interaction between fundamental factors and market sentiment for a more comprehensive understanding of stock valuation dynamics.

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Journal Info

Abbrev

JFAE

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

The Journal of Financial, Accounting, and Economics (JFAE) is a scientific journal published by the Global World Scientific which aims to publish articles of empirical and theoretical studies in the field of Accounting, Finance, and Economics. Editors accept articles in English or Bahasa and were ...