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Identifying the value of lq45 and 50 biggest market capitalization stocks with dividend discount model

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A lot of people in the investment world are trying to benefit from knowing beforehand the real value of an asset. As a result, various mathematical tools are developed and used to help valuating stocks. The research is conducted to understand better the application of one of the mathematical tools available; the Dividend Discount Model (DDM). The data collected are secondary data for the period 2004-2006 which are gathered mostly from the Indonesia Stock Exchange (IDX). rnrnThe Dividend Discount Model could be implemented to identify the value of a stock. However, there are three variables that need to be estimated beforehand. They are the growth rate, expected return, and dividend per share. Having determined the value of a stock with DDM, we could identify whether the stock is overvalued or undervalued.rnrnIn the study, the researcher discovers certain characteristics and tendencies in the results of using the Dividend Discount Model as a valuation technique. The results can be divided into three major characteristics. They are stocks with negative r-g" figures

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Availability

B00383

(wh)

Available

Detail Information

Series Title

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Call Number

383

Publisher

: Swiss German University., 2008

Collation

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Language

English

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Classification

NONE

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Edition

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Subject(s)

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Specific Detail Info

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Statement of Responsibility

and overvalued stocks. Each characteristic will then be analyzed for their tendencies in the actual price movement."

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