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Stock Valuation Analysis Using Discounted Cash Flow and Price Earning Ratio for Investment Decision Making in Mining Companies Listed on the ESG Sector Leaders IDX KEHATI

Year: 2025

Type: article

Abstract: Stock valuation is very important for investors to make a good investment decision in order to get the desired profit. This study uses Discounted Cash Flow (DCF) and Price Earning Ratio (PER) to determine the fair value of shares. This study uses a descriptive applied quantitative method that focuses on the shares of mining companies listed on the ESG Sector Leaders IDX KEHATI. There are 3 out of 9 companies that meet the sampling criteria, namely AKRA, ANTM, and ELSA. The results indicated that the fair value of the three stocks was undervalued. The Root Mean Square Error (RMSE) value of the PER method is smaller, which means it is more accurate. The investment decision recommendation is to buy these stocks.

Source: International Journal of Business and Applied Economics

DOI: 10.55927/ijbae.v4i2.7

Authors: Ain Idza Qalbu, Edi Wijayanto, Theresia Tyas Listyani

Institution: Politeknik Negeri Semarang

Language: English

Topic: Financial Analysis and Corporate Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W4409296471

FWCI:

Cites: 5

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Related to: 10