Combination of Fundamental and Technical Analysis of Shares: Revealing the Profit Potential in the Stock Market of PT. United Tractors, Tbk
Article Sidebar
Main Article Content
Abstract
This research aims to conduct a comprehensive analysis of PT. United Tractors, Tbk shares using a top-down approach, which includes macroeconomic analysis, industry analysis, and company analysis. Additionally, the study aims to determine the intrinsic value of the shares through the Relative Valuation Techniques method and provide suitable recommendations for investors regarding whether to buy, hold, or sell the company's shares. The macroeconomic analysis revealed fluctuations in indicators such as Gross Domestic Product (GDP), inflation, interest rates, money supply, and exchange rate growth. Meanwhile, the industry analysis identified strong competition among similar companies as the dominant force in the market. The threat of new entrants also poses a challenge, especially when competitors target the same market segment. Additionally, the power of suppliers is higher when the number of suppliers is limited compared to the proportion of buyers. Barriers arise when consumers encounter cheaper substitute products. Moreover, the company analysis showcased varying trends in financial ratios such as RTR, FAT, TATO, CR, QR, DER, DAR, GPM, OPM, NPM, ROA, ROS, ROI, EPS, PSR, PER, and PBVR during the period from 2016 to 2021. Furthermore, it was observed that PT. United Tractors, Tbk tends to undervalue its shares by selling them at prices below the intrinsic value. To this end, the study suggests that when the stock market price is lower than the intrinsic value, the shares are undervalued, prompting investors to consider buying. If the stock market price is equal to the intrinsic value, it is fair-valued, and investors are advised to hold. On the other hand, when the stock market price exceeds the intrinsic value, it is overvalued, and investors should consider selling.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Ahmed, R., ullah, S., Hudson, R., & Gregoriou, A. (2020). The implications of liquidity ratios: Evidence from Pakistan stock exchange limited. The Quarterly Review of Economics and Finance. https://doi.org/https://doi.org/10.1016/j.qref.2020.12.006
Al Qudah, A. M. A., & Malkawi, E. (2014). Financial Crisis, openness of the economy and the financial performance of Jordanian listed banks: analytical study. Arab Economic and Business Journal, 9(1), 61–66. https://doi.org/https://doi.org/10.1016/j.aebj.2011.10.001
Bae, K.-H., El Ghoul, S., Gong, Z. (Jason), & Guedhami, O. (2021). Does CSR matter in times of crisis? Evidence from the COVID-19 pandemic. Journal of Corporate Finance, 67, 101876. https://doi.org/https://doi.org/10.1016/j.jcorpfin.2020.101876
Brito, B. (2020). The pioneer market for forest law compliance in Paragominas, Eastern Brazilian Amazon. Land Use Policy, 94, 104310. https://doi.org/https://doi.org/10.1016/j.landusepol.2019.104310
Evans, L., Owda, M., Crockett, K., & Fernandez Vilas, A. (2021). Credibility assessment of financial stock tweets. Expert Systems with Applications, 168, 114351. https://doi.org/https://doi.org/10.1016/j.eswa.2020.114351
Fernandez, R., Palma Guizar, B., & Rho, C. (2021). A sentiment-based risk indicator for the Mexican financial sector. Latin American Journal of Central Banking, 2(3), 100036. https://doi.org/https://doi.org/10.1016/j.latcb.2021.100036
Friederich, S., & Payne, R. (2015). Order-to-trade ratios and market liquidity. Journal of Banking & Finance, 50, 214–223. https://doi.org/https://doi.org/10.1016/j.jbankfin.2014.10.005
Grundke, P., & Kühn, A. (2020). The impact of the Basel III liquidity ratios on banks: Evidence from a simulation study. The Quarterly Review of Economics and Finance, 75, 167–190. https://doi.org/https://doi.org/10.1016/j.qref.2019.02.005
Hazudin, S. F., Mohamad, S. A., Azer, I., Daud, R., & Paino, H. (2015). ISO 14001 and Financial Performance: Is the Accreditation Financially Worth It for Malaysian Firms. Procedia Economics and Finance, 31, 56–61. https://doi.org/https://doi.org/10.1016/S2212-5671(15)01131-4
Huang, K.-C., & Wang, Y.-C. (2021). Do reputation concerns motivate voluntary initiation of corporate social responsibility reporting? Evidence from China. Finance Research Letters, 102611. https://doi.org/https://doi.org/10.1016/j.frl.2021.102611
Jakub, S., Viera, B., & Eva, K. (2015). Economic Value Added as a Measurement Tool of Financial Performance. Procedia Economics and Finance, 26, 484–489. https://doi.org/https://doi.org/10.1016/S2212-5671(15)00877-1
Khaksar, J., Salehi, M., & Lari DashtBayaz, M. (2022). The relationship between auditor characteristics and fraud detection. Journal of Facilities Management, 20(1), 79–101. https://doi.org/10.1108/JFM-02-2021-0024
Lim, G., Li, C., & Adi Syailendra, E. (2021). Why is it so hard to push Chinese railway projects in Southeast Asia? The role of domestic politics in Malaysia and Indonesia. World Development, 138, 105272. https://doi.org/https://doi.org/10.1016/j.worlddev.2020.105272
Sugiyono. (2017). Metode Penelitian Kualitatif dan R and B. In Bandung: Alfabeta. CV. Alfabeta.
Tang, Y., Liu, Z., Li, Y., Yang, N., Wan, Y., & Chua, K. J. (2020). A double-choking theory as an explanation of the evolution laws of ejector performance with various operational and geometrical parameters. Energy Conversion and Management, 206, 112499. https://doi.org/https://doi.org/10.1016/j.enconman.2020.112499
Tran, V. T., Nguyen, T. T., & Tran, N. T. M. (2019). Gender difference in access to local finance and firm performance: Evidence from a panel survey in Vietnam. Economic Analysis and Policy, 63, 150–164. https://doi.org/https://doi.org/10.1016/j.eap.2019.05.004
Trifonov, D. (2021). Political connections of Russian corporations: Blessing or curse? Journal of Behavioral and Experimental Finance, 29, 100458. https://doi.org/https://doi.org/10.1016/j.jbef.2021.100458
Yanti, W. I. P. (2019). Pengaruh Inklusi Keuangan Dan Literasi Keuangan Terhadap Kinerja Umkm Di Kecamatan Moyo Utara. Jurnal Manajemen Dan Bisnis, 2(1), 1–10.
Zhou, F., Zhu, J., Qi, Y., Yang, J., & An, Y. (2021). Multi-dimensional corporate social responsibilities and stock price crash risk: Evidence from China. International Review of Financial Analysis, 78, 101928. https://doi.org/https://doi.org/10.1016/j.irfa.2021.101928
Zhu, X., Zuo, X., & Li, H. (2021). The dual effects of heterogeneous environmental regulation on the technological innovation of Chinese steel enterprises—Based on a high-dimensional fixed effects model. Ecological Economics, 188, 107113. https://doi.org/https://doi.org/10.1016/j.ecolecon.2021.107113