Applied Finance and Accounting
https://redfame.com/journal/index.php/afa
<p><em><strong>Applied Finance and Accounting</strong></em> (ISSN 2374-2410; E-ISSN 2374-2429) is a peer-reviewed, open access journal, published by Redfame Publishing. The journal is published in both print and online versions. The journal accepts article submissions <strong><a href="/journal/index.php/afa/about/submissions#onlineSubmissions">online</a></strong> or by <strong><a href="mailto:afa@redfame.com">e-mail</a></strong>. It publishes original research, applied and educational articles in the areas of finance, accounting and related disciplines.</p><p>Authors are encouraged to submit complete unpublished and original works, which are not under review in any other journals. <em>AFA</em> is striving to provide the best platform for teachers and researchers worldwide to exchange their latest findings.</p>Redfame publishingen-USApplied Finance and Accounting2374-2410<p>Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.</p><p>Copyrights for articles published in Redfame journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.</p>Valuate Stock Based on Accounting Approach Using Feltham and Ohlson Model
https://redfame.com/journal/index.php/afa/article/view/5970
<p class="text">Residual Income Model (RIM) is an accounting approach introduced and used by Feltham and Ohlson to measure firm value using future income based on most current information. The surplus relation applying firm earning and book value is used to forecast with consistent manner. This research uses RIM to valuate the pharmaceutical companies’ stocks listed on the Indonesia Stock Exchange (IDX) for the year of 2010-2019 to be able to estimate the intrinsic or fair values of the companies’ shares for the year of 2020-2023, compared to their current market values and used as the basis to make decisions. Macro economy information of Indonesia that strongly relate to the pharmaceutical companies are applied to forecast the future values of the companies and the stock market information to determine the market values and the investment interest rates. The stock intrinsic values of DVLA, INAF, KAEF, KLBF, MERK and PYFA are confirmed below the market values for the year of 2020-2023. But, the stock intrinsic values of SCPI are above the market values. Thus, the stock intrinsic values of TSPC are fair. There are 6 (six) company stocks overvalued or expensive, 1 (one) company stock is undervalued or cheap, and another is fair. </p>Hendryan Marudut Tua PurbaAdler Haymans ManurungJhonni Sinaga
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2023-03-062023-03-0691110.11114/afa.v9i1.5970