Intrinsic Value in Stock Return

Analysis of Market Ratio Toward Stock Return in Retail Companies on 2015–2016

“…The results of this study are consistent with research conducted by Winarno [10] that the operating cash flow information does not affect the stock returns. However, these results do not correspond with references number [8,9], in which they found that the operating cash flow affects stock returns. This means that the company which has been seen by the investors to have high Price Cash Flow Ratio have lower returns and company which has low Price Cash Flow Ratio has higher stock returns.…”

“…The result is Direct Cash Flow Method (DCFM) return on asset and Direct Cash Flow Method (DCFM) yield measures are generally superior to income statement measures based on profitability. Research by Jansen [9] develops a stock pricing model that expresses future changes in value creation to be a primary driver of stock return. The result is using fundamental result of the model then empirically suggested in the standard cross-sectional and time series tests that free cash flow, as a proxy value creation is a significant in determining stock returns.…”