Investment decision by using Capital Asset Method Pricing Model (CAPM) (Case studies on five automotive companies listed in stock exchange)

Abstract

Investment is a tool for investors to get more profit than what has been invested. Investors must be able to predict the possibilities that occur when investing. Capital Asset Pricing Model is a tool to predict the development of investment in a particular company used to calculate and determine the Expected Return in minimizing risk investments. The authors conducted research using a sample of 5 companies in the automotive industry, namely PT Astra International Tbk, PT Indokordsa Tbk, PT Indomobil Sukses Internasional Tbk, PT Astra Otoparts Tbk, and PT Gajah Tunggal Tbk. This study uses a descriptive quantitative approach with Microsoft Excel 2016 analysis tools. This study aims to determine Portfolio Analysis with the Capital Asset Pricing Model (CAPM) approach which is used as the basis for making stock investment decisions in automotive industry sector companies listed on the Indonesia Stock Exchange. Use from the results of the analysis of the results by comparing the value of E(Ri) has a directly proportional relationship, meaning that the higher the value of, then the stock return (E(Ri)) will be high as well. Of the 5 companies, there are 2 companies that are in the Undervalued category and 3 companies that are in the overvalued category. This means that investors who will invest in companies engaged in the automotive industry can decide to buy shares of the companies PT Indomobil Sukses Internasional Tbk and PT Gajah Tunggal Tbk, because they are classified as undervalued. Meanwhile, investors who want to invest in shares are not advised to buy company shares that are in the overvalued category, but are advised to sell them to investors who already have shares in the company.

Analisis Capital Asset Pricing Model Pada Sektor Energi Periode 2020-2022

“…Suatu saham dikatakan efisien jika return individualnya terjadi dari return yang diharapkan (Ri) > E (Ri), artinya keputusan investasi yang diambil adalah membeli saham tersebut. Sebagai alternatif, sekuritas yang tidak efisien adalah sekuritas yang kelipatan penilaian individualnya lebih rendah dari perkiraan (Ri) dan (E(Ri)), sehingga implikasinya adalah sudah waktunya untuk menjual sekuritas tersebut (Alecia Ferrari, 2020;Edison & Heikal, 2023;Musodik et al, 2021).…”

Exploring Investment Decision-Making with CAPM: Case Studies on Ten Raw Materials Companies Listed in Stock Exchange

“…By seeing the importance of portfolio analysis for investors to determine investment in the capital market, it is hoped that portfolio analysis with the CAPM approach can help investors make investment decisions. Several studies have used CAMP in determining efficient stock classifications, including Musodik et al(2021), who determined the classification of automotive sector stocks, and Rahmah Dewi et al ( 2022), who carried out an effective IDX30 stock classification. This research will conduct effective stock classification using CAPM in the raw materials sector.…”

DECISIONS ON SHARE INVESTMENT IN AGRICULTURE SECTOR COMPANIES (CAPM Method Approach)

“…To accurately and simply predict the return of a security, an estimating model is required. In the financial industry, the presence of the Capital Asset Pricing Model (CAPM), which may be used to estimate the return of a security stock, is seen crucial (Musodik et al, 2021;Demsey, 2013). Capital Asset Pricing Model (CAPM) is a model or method used to estimate the return value of a financial asset by comparing the risk-bearing variable to the return received (Sharpe, 1964;Alexandri & Nita, 2014).…”