Fundamental Analysis Using the Price Earning Ratio (PER) Approach in Stock Valuation and Investment Decision-Making: A Systematic Literature Review Study
DOI:
https://doi.org/10.56359/velocity.v1i1.668Keywords:
Fundamental Analysis, Price Earning Ratio, Stock Valuation, Investment Decision, Financial IndicatorsAbstract
Introduction:The capital market plays a crucial role in supporting economic growth by serving as a platform for fund mobilization and investment. Among the instruments offered, stocks are among the most popular, though they involve significant risk. Accurate valuation is essential to guide rational investment decisions.
Objective:This study aims to systematically review literature discussing the use of the Price Earning Ratio (PER) as a fundamental analysis tool for stock valuation and investment decision-making across different industries and economic conditions.
Method:A Systematic Literature Review (SLR) approach was used to analyze eleven relevant journal articles retrieved from SINTA and Google Scholar. The inclusion criteria focused on studies applying PER in stock valuation. Each study was reviewed to identify valuation outcomes (undervalued, fairvalued, overvalued) and recommended investment decisions.
Result:The review found that PER is widely used to evaluate intrinsic stock value. Most studies concluded that undervalued stocks are recommended for purchase due to their long-term profit potential, while overvalued stocks are often suggested for sale to avoid losses. Several articles also combined PER with other financial indicators such as Price to Book Value (PBV), Return on Equity (ROE), and Dividend Yield (DY) to enhance analytical accuracy.
Conclusion:PER is an effective tool in stock valuation and investment decision-making. However, its interpretation should consider sectoral differences, macroeconomic conditions, and should be complemented by other financial ratios for a more comprehensive assessment.
Community Implication:This study provides valuable insights for both institutional and retail investors. By applying PER analysis alongside other financial metrics, investors can make more informed and strategic decisions in stock market investment, especially in the banking, mining, and consumer goods sectors.
Keywords: Fundamental Analysis, Price Earning Ratio, Stock Valuation, Investment Decision, Financial Indicators
References
Azizah, T. N. (2024). ANALISIS VALUASI HARGA SAHAM DENGAN PENDEKATAN PRICE EARNING RATIO DAN PRICE TO BOOK VALUE SEBAGAI DASAR PENGAMBILAN KEPUTUSAN INVESTASI (Studi Pada Sub-Sektor Perbankan Yang Terdaftar di Bursa Efek Indonesia Periode 2019-2022) (Doctoral dissertation, Universitas Nusantara PGRI Kediri).
Fama, E. F., & French, K. R. (1992). The cross-section of expected stock returns. The Journal of Finance, 47(2), 427–465.
Ganefi, H. S., Prasetyono, A., & Amalia, M. R. (2023). Penilaian saham secara fundamental menggunakan metode dividend discount model dan price earning ratio untuk keputusan investasi. Jurnal Riset Ekonomi dan Bisnis, 16(1), 68-80.
Graham, B., & Dodd, D. L. (2008). Security analysis: Sixth edition, foreword by Warren Buffett. McGraw-Hill Education.
Jayanthi, D. A. P. (2024). ANALISIS PENDEKATAN PRICE EARNING RATIO (PER) UNTUK PENGAMBILAN KEPUTUSAN INVESTASI PADA PERUSAHAAN MANUFAKTUR SUB SEKTOR MAKANAN DAN MINUMAN YANG TERDAFTAR DI BEI PERIODE 2020-2022 (Doctoral dissertation, Universitas Putra Bangsa).
Karman, A., Jayanti, C. M. R., & Firdaus, M. A. (2022). KEPUTUSAN INVESTASI SAHAM DENGAN MENGGUNAKAN ANALISIS FUNDAMENTAL MELALUI PENDEKATAN PRICE EARNING RATIO (Perusahaan Terdaftar dalam Jakarta Islamic Index 2017-2018). El-Iqtishod: Jurnal Ekonomi Syariah, 6(1), 65-79.
Lee, C. M. C., Myers, J., & Swaminathan, B. (2003). What is the intrinsic value of the Dow? The Journal of Finance, 54(5), 1693–1741.
Palalangan, C. A., Pirade, H. L., & Roreng, P. P. (2021). Penerapan Analisis Fundamental untuk Menilai Kewajaran Harga Saham sebagai Dasar Pengambilan Keputusan Investasi melalui Pendekatan Price Earning Ratio (Per). Accounting Profession Journal (APAJI), 3(2), 53-64.
Ramadhan, G., Rifki, M., Sari, S. D. A., & Dasman, S. (2025). ANALISIS FUNDAMENTAL MENGGUNAKAN PRICE TO BOOK VALUE (PBV), PRICE EARNING RATIO (PER) DAN DIVIDEND YIELD (DY) SEBAGAI DASAR KEPUTUSAN INVESTASI. Stratēgo: Jurnal Manajemen Modern, 7(1).
Rita, I. S. (2024). Analisis Fundamental dengan Pendekatan Price Earning Ratio untuk Menilai Kewajaran Harga Saham dan Pengambilan Keputusan Investasi pada Perusahaan Sektor Perbankan yang Terdaftar di BEI Periode 2016–2022.
Saputra, M. R., & Linda, R. (2023). Analisis fundamental menggunakan Return On Equity (Roe), Earning Per Share (Eps), Price Earning Ratio (Per), Price To Book Value (Pbv) Dan Dividend Yield (Dy) sebagai dasar keputusan investasi. Jurnal Ekonomi Manajemen Bisnis Syariah dan Teknologi, 2(1), 115-127.
Shiller, R. J. (2000). Irrational exuberance. Princeton University Press.
Summers, L. H. (1988). Does the stock market rationally reflect fundamental values? The Journal of Finance, 41(3), 591–601.
Suwono, S., & Sartinah, S. (2021). ANALISIS KEPUTUSAN INVESTASI SAHAM DENGAN PENDEKATAN PRICE EARNING RATIO (PER)(Studi Kasus Pada Saham yang termasuk kedalam Jakarta Islamic Index Tahun 2016-2018). AmaNU: Jurnal Manajemen dan Ekonomi, 4(2), 132-148.
Tawe, A., Nurman, N., Anwar, A., & Musa, M. I. (2023). Penggunaan Price Earning Ratio Dan Price To Book Value Sebagai Dasar Pengambilan Keputusan Investasi Saham (Studi Pada Perusahaan Sub Sektor Batubara Yang Terdaftar Di Bursa Efek Indonesia Periode Tahun 2020-2022). CEMERLANG: Jurnal Manajemen dan Ekonomi Bisnis, 3(4), 300-312.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Ni Wayan Dista Anggreni, I Gede Bayu Wijaya
This work is licensed under a Creative Commons Attribution 4.0 International License.
Articles published in Velocity Journal are licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0). Under this license, authors retain the copyright of their work. Users are free to copy, distribute, display, and perform the work, and to make derivative works, even for commercial purposes, as long as appropriate credit is given to the original author.
Velocity Journal is Copyrigt and licensed under a Creative Commons Attribution 4.0 International License.
