Analysis of investment strategy in Indonesian consumer goods industry: Benjamin Graham's approach

Abstract

Shares price fluctuations cause investors to take irrational actions. An assessment of investment valuation is needed to deal with market fluctuations so as to reduce investment risk. Benjamin Graham Formula is an investment strategy by comparing the fair value of the shares with the shares price to help investors in making investment decisions. Benjamin Graham's value investing strategy is a strategy of valuing shares whose actual value is higher than market value, thereby finding significant returns over the long term. This research is quantitative descriptive. Based on the selection criteria for the Benjamin Graham method, the researcher suggests buying ADES shares. The firms share price is currently undervalued. CEKA shares have an undervalued value, this can be used as an alternative consideration in making investment decisions.

Analysis of Sharia Banking Share Valuation Using Intrinsic Value and Margin of Safety Method Graham Number

“…Broadly speaking, the findings of this study are in line with the research of (Rakim et al, 2022), (Yanuarsyah, 2021), (Wirawan & Sumirat, 2021), (Sari et al, 2020), (Yulita & Rahayu, 2019), and (Sitorus & Hutasoid, 2017). That strategy for valuing stock portfolios by implementing the Benjamin Graham number investment strategy can assist investors in making investment decisions, so they can find maximum returns in the long term by minimizing potential risks.…”

“…Always profitable in the last 5 to 10 years 7. Always consistently distribute dividends in a row in the last 5 to 10 years Several studies say that the criteria set for Benjamin Graham's value investing method, also known as the Graham screening, are using ten criteria (Ervian, 2015), (Rachmattulah & Faturohman, 2016), (Rakim et al, 2022), or nine criteria (Sitorus & Hutasoid, 2017), (Srivastava & Kulshrestha, 2020), as well as seven criteria (Wirawan & Sumirat, 2021). Nonetheless, in general, the intrinsic value graham number method focuses on earnings ratios such as EPS, PER, BVPS, and PBV.…”

“…Meanwhile, Rakim et al (2022) analyzed investment strategies using Benjamin Graham's approach as alternative consideration in making investment decisions. Because applying the Graham Number combination has been proven to produce an excess return that exceeds the Index (Rachmattulah & Faturohman, 2016).…”

The Effect of Perceived Value and Ewom on Loyalty in the Industry Consumer Goods Based on Equity Theory

“…One of the industries that contribute to the rise in the gross domestic product is the consumer products business, which is categorized as a defensive sector and is, therefore, more stable and resilient to economic upheaval (Rakim, Iqbal, and Misra 2022). In Scott Krohn's opinion, there are four corporate social responsibility efforts: direct charitable giving, ethical business conduct, and consideration of economic responsibility.…”