Strategy Of Fair Price Valuation With Fundamental Analysis Of The Lq 45 Stock Index Case Study On The Indonesia Stock Exchange, 2009 – 2019

Abstract

The price of a share is fair if the issuer has performance and prospects. In this study, the authors use fundamental analysis to determine the performance and prospects of issuers. From the financial statements of companies included in the LQ45 index listed on the Indonesia Stock Exchange, we analyze fundamentally. The data we researched from 2009 to 2019. The number of samples was 45 companies for 11 years, so there were 495 data. These variables include; Price Earning Ratio (PER), Earning Per Share (EPS), Book Value (BV), Price to Book Value (PBV), Net Profit Margin (NPM), Return On Equity (ROE), Return On Asset (ROA), and Debit to Equity Ratio (DER). The results of the study of all variables present the following information: the variable price earnings ratio (PER) has a positive and insignificant effect. The Earnings per Share (EPS) variable has a positive and significant effect. The book value variable (BV) has a positive and insignificant effect. The variable Price to Book Value (PBV) has a positive and significant effect. Net Profit Margin (NPM) has a negative and insignificant effect. The Return On Equity (ROE) variable has a positive and significant effect. The Return On Asset variable has a negative and insignificant effect. The variable Debt to Equity Ratio (DER) has a negative and insignificant effect.