Is intrinsic value priced in the cross section of stock returns?

Artikis, Panagiotis G.; Kampouris, Christos G.

doi:10.1080/23322039.2022.2098607

Cited by 4 publications

(2 citation statements)

References 40 publications

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“…7. Artikis & Kampouris (2022). "Have the results that the new intrinsic value risk factor absorbs the information content and explains better the cross-section of returns, mainly for small size and high book to market value companies."…”

Section: Literature Reviewmentioning

confidence: 99%

The Influence of the Intrinsic Value of Stocks on Its Market Price

Kennedy

Sinaga

2022

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The intrinsic value of a stock does not necessarily reflect its fair market price. This study aims to test whether there is an effect of intrinsic stock value on the formation of its market price, using a sample of stocks listed on the LQ-45 Index in 2018-2019 on the Indonesia Stock Exchange. The research method used is a quantitative method using linear regression analysis. The regression results show that the intrinsic value variable has a significant positive effect on stock market prices listed on the 2018-2019 LQ-45 Stock Index on the Indonesia Stock Exchange.

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Section: Literature Reviewmentioning

confidence: 99%

The Influence of the Intrinsic Value of Stocks on Its Market Price

Kennedy

Sinaga

2022

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“…However, the market value does not necessarily reflect the actual worth of the shares. The true value of a stock is its intrinsic value (Anusha & Murugan, 2020;Kennedy & Sinaga, 2022), which plays a significant role in investors' decision-making regarding stock investments (Artikis & Kampouris, 2022;Mensah et al, 2022;Sharafoddin & Emsia, 2016). When investing in stocks, it is crucial to understand fundamental analysis.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Debt-to-Equity Ratio, Return on Asset, Current Ratio, and Total Asset Turnover on Stock Price: The Intervening Effect of Intrinsic Value in Indonesia’s Retail Business

Nurwulandari,

Wahid

2023

Shirkah

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This study examines the effect of Debt-to-Equity Ratio (DER), return on assets (ROA), current ratio (CR), and total asset turnover (TATO) on stock prices with their Intrinsic Value as intervening variables in retail companies in Indonesia. Data regarding retail companies were obtained from the Indonesia Stock Exchange, and secondary data on these companies' financial ratios were collected from Stockbit. Stock price data were sourced from Yahoo Finance, and the intrinsic value of shares was determined using the price-to-earning ratio method. Drawing on structural equation modeling, the findings demonstrate that DER and ROA exert a positive and statistically significant effect on intrinsic value. TATO, on the other hand, exhibits a negative and statistically significant effect on intrinsic value, while CR demonstrates a negative and non-significant effect. Regarding stock prices, DER and CR have a negative and statistically significant effect, while ROA and Intrinsic Value have a positive and statistically significant effect. TATO, however, shows a negative and non-significant effect on stock prices. Furthermore, DER has a positive and non-significant effect on stock prices through intrinsic value, whereas ROA has a positive and statistically significant effect on stock prices through intrinsic value. CR, on the other hand, exhibits a negative and non-significant effect on stock prices through intrinsic value, and TATO demonstrates a negative and statistically significant effect on stock prices through intrinsic value.

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Fundamental analysis of the firm on stock returns in the uncertainty caused by the COVID-19 pandemic: The case of emerging economy

Naibaho,

Simatupang

2024

CBSR

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This paper refers to a previous study of Barua (2020), which shows the impact of the pandemic on aggregate demand and supply. The novelty and the purpose of this study is to examine the fundamental impact arising from the uncertainties created by the COVID-19 pandemic caused by the Indonesian government restrictions policy (spectrum) on stock returns of the sample companies listed on the Indonesia Stock Exchange (IDX) with a minimum of 200 trading days in 2020 from 2016 to 2020. This study used multiple regression analysis and cross-sectional for the cumulative abnormal return (CAR). The result shows that the fundamentals tested had no significant effect on cumulative abnormal returns. On the other hand, only the current ratio showed a significant effect on Spectrum 1 and 4; Spectrum 1 had a positive effect while Spectrum 4 had a negative effect, and the debt service coverage ratio (DSCR) had a slightly significant effect on Spectrum 1. The study results indicate that each spectrum had different levels of uncertainty, which gave rise to different perspectives for each investor. This study provides a perspective for investors to see different levels of uncertainty on the current ratio (CR) and DSCR as determinants of fundamentals for investment consideration.

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Is intrinsic value priced in the cross section of stock returns?

Cited by 4 publications

References 40 publications

The Influence of the Intrinsic Value of Stocks on Its Market Price

The Influence of the Intrinsic Value of Stocks on Its Market Price

The Effect of Debt-to-Equity Ratio, Return on Asset, Current Ratio, and Total Asset Turnover on Stock Price: The Intervening Effect of Intrinsic Value in Indonesia’s Retail Business

Fundamental analysis of the firm on stock returns in the uncertainty caused by the COVID-19 pandemic: The case of emerging economy

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