Analysis Of Present Value Approach With Dividend Discount Model Method To Assess The Fairness Of Share Prices

Abstract

This studies is devoted to locate the fairness of property and real estate firm stock's price that analyzed using the present value approach on Dividend Discount Model, furthermore recommend choice for investors. It uses secondary data that include financial reports and closing price. The sample's are property and real estate companies. Based on the result, undervalued stocks and a good companies financial performance are PT Ciputra Development Tbk, PT Ciputra Property Tbk, PT Gowa Makassar Turism Development Tbk, PT Perdana Gapura Prima Tbk, PT Lippo Karawaci Tbk, PT Metropolitan Kentjana Tbk, PT Plaza Indonesia Realty Tbk, PT Sumarecon Agung Tbk that those stock are affordable. PT Alam Sutera Realty Tbk and PT Jaya Real Property Tbk have good financial performances, but the price are overvalued so it's better if to be hold. PT Ciputra Surya Tbk and PT Pudjiadi Prestige Tbk are in bad financial condition's and the stock are overvalued, so it will be best decision for investors if sell it or not to be bought.