The Effect of Stock Price And Return With The Value Investing Method During The Covid-19 Pandemic In The Banking Sector

Abstract

The value investing method is a method of analyzing stocks based on fundamental analysis that measures the company's performance as presented in the financial statements so that investors who apply the value investing method are required to be familiar with the business in the company so that the funds invested can provide benefits for investors in the long term. The purpose of this research is to find out the application of the value investing method during the Covid-19 pandemic, which is proxied by measuring the price earning ratio, price book value, return of equity, and net profit margin on returns and stock prices. This research is a quantitative study using panel data using a purposive sampling method involving 21 banks listed on the Jakarta Stock Exchange from the 1st quarter of 2020 to the 4th quarter of 2021. This research uses the Random Effect Model regression method with the help of the STATA application. The results obtained from this analysis are that PER & ROE do not affect stock returns and prices, while PBV & NPM affect stock returns and prices. This research is expected to contribute to novice investors as additional knowledge in analyzing stocks so that decisions are made based on thorough analysis.