Penerapan Konsep Present Value pada Valuasi Saham Menggunakan Metode Discounted Cash Flow (DCF) Dan Dividend Discounted Model (DDM)
DOI:
https://doi.org/10.31941/delta.v14i1.5823Abstract
The concept of time value of money plays a fundamental role in investment decisions, especially in stock investment. Before investing in stocks, investors must consider the fair price of the stock or its intrinsic value to estimate the investment. This value is then compared to the market price in valuing the stock. This study aims to conduct a valuation using the Discounted Cash Flow (DCF) and Dividend Discounted Model (DDM) methods. To test the accuracy of the two methods, the Root Mean Squared Error (RMSE) is used. An empirical study was conducted on two energy sector stocks (IDX-Energy), namely BYAN and ITMG stocks listed on the Indonesia Stock Exchange for the 2019-2021 period. The results of the study showed that BYAN stocks were undervalued using the DCF method, while ITMG stocks were overvalued using the DFC method. However, both stocks were undervalued using the DDM method. In addition, it was also obtained that using the DDM method produced a small RMSE for both stocks. This indicates a high level of accuracy in valuing BYAN and ITMG stocks using the DDM method. This research provides an important contribution to making wiser and more accurate stock investment decisions.
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