Record Detail

The covid-19 pandemic has made world economic conditions absurdly uncertain and disoriented.
Conventional economic standards also cannot be used properly, let alone become a reference for
financial investment for investors. Beta as the basis for company valuation becomes a simple
component but determines the direction of company valuation. From the beta component, you can
find the cost of equity and then the weighted average cost of capital. By far, looking for good beta
is a necessity. This Research will open a discussion about the fundamentals of risk management
associated with the CAPM theory which has produced worldwide indicators and has colored
financial, monetary and investment aspects throughout the world in the last 4 decades. Hitherto,
the various existing assessment methods each has advantages and disadvantages. However, in
general, the Discounted Cash Flow method is considered the best. This study shows that DCF is
very suitable for industries such as mining, petroleum and property. whereas the P / E method is
more suitable for the financial industry.