Stock Grouping Based on Price Earnings Ratio and Price Book Value Using K-Medoids Algorithm
Investing involves allocating funds to achieve optimal returns by evaluating opportunities and managing risks in asset acquisition. Recently, many news reports have highlighted issues in the Indonesian capital market, such as stock investors using online loan funds for trading, which often leads to...
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| Format: | Article |
| Language: | English |
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Informatics Department, Faculty of Computer Science Bina Darma University
2024-09-01
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| Series: | Journal of Information Systems and Informatics |
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| Online Access: | https://journal-isi.org/index.php/isi/article/view/809 |
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| _version_ | 1850187732852146176 |
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| author | Muhammad Oemar Abdillah Raissa Amanda Putri |
| author_facet | Muhammad Oemar Abdillah Raissa Amanda Putri |
| author_sort | Muhammad Oemar Abdillah |
| collection | DOAJ |
| description | Investing involves allocating funds to achieve optimal returns by evaluating opportunities and managing risks in asset acquisition. Recently, many news reports have highlighted issues in the Indonesian capital market, such as stock investors using online loan funds for trading, which often leads to debt. This research aims to apply the K-Medoids algorithm for stock clustering, enabling investors to select fundamentally sound stocks based on the Price-Earnings Ratio (PER) and Price-Book Value (PBV). The K-Medoids method results show that Cluster 1 includes 93 stocks with moderate PER and PBV values. Cluster 2 comprises 91 stocks with the lowest PER and PBV values. Cluster 3 contains 113 stocks with the highest PER and PBV values. Developing an information system that classifies stocks based on PER and PBV can help investors analyze and make investment decisions more effectively. |
| format | Article |
| id | doaj-art-c83b4f2043de4b4c95fdd70ff1009c46 |
| institution | OA Journals |
| issn | 2656-5935 2656-4882 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | Informatics Department, Faculty of Computer Science Bina Darma University |
| record_format | Article |
| series | Journal of Information Systems and Informatics |
| spelling | doaj-art-c83b4f2043de4b4c95fdd70ff1009c462025-08-20T02:16:02ZengInformatics Department, Faculty of Computer Science Bina Darma UniversityJournal of Information Systems and Informatics2656-59352656-48822024-09-01631704172210.51519/journalisi.v6i3.809809Stock Grouping Based on Price Earnings Ratio and Price Book Value Using K-Medoids AlgorithmMuhammad Oemar Abdillah0Raissa Amanda Putri1State Islamic University of North SumatraState Islamic University of North SumatraInvesting involves allocating funds to achieve optimal returns by evaluating opportunities and managing risks in asset acquisition. Recently, many news reports have highlighted issues in the Indonesian capital market, such as stock investors using online loan funds for trading, which often leads to debt. This research aims to apply the K-Medoids algorithm for stock clustering, enabling investors to select fundamentally sound stocks based on the Price-Earnings Ratio (PER) and Price-Book Value (PBV). The K-Medoids method results show that Cluster 1 includes 93 stocks with moderate PER and PBV values. Cluster 2 comprises 91 stocks with the lowest PER and PBV values. Cluster 3 contains 113 stocks with the highest PER and PBV values. Developing an information system that classifies stocks based on PER and PBV can help investors analyze and make investment decisions more effectively.https://journal-isi.org/index.php/isi/article/view/809investmentk-medoidsclusteringinformation system |
| spellingShingle | Muhammad Oemar Abdillah Raissa Amanda Putri Stock Grouping Based on Price Earnings Ratio and Price Book Value Using K-Medoids Algorithm Journal of Information Systems and Informatics investment k-medoids clustering information system |
| title | Stock Grouping Based on Price Earnings Ratio and Price Book Value Using K-Medoids Algorithm |
| title_full | Stock Grouping Based on Price Earnings Ratio and Price Book Value Using K-Medoids Algorithm |
| title_fullStr | Stock Grouping Based on Price Earnings Ratio and Price Book Value Using K-Medoids Algorithm |
| title_full_unstemmed | Stock Grouping Based on Price Earnings Ratio and Price Book Value Using K-Medoids Algorithm |
| title_short | Stock Grouping Based on Price Earnings Ratio and Price Book Value Using K-Medoids Algorithm |
| title_sort | stock grouping based on price earnings ratio and price book value using k medoids algorithm |
| topic | investment k-medoids clustering information system |
| url | https://journal-isi.org/index.php/isi/article/view/809 |
| work_keys_str_mv | AT muhammadoemarabdillah stockgroupingbasedonpriceearningsratioandpricebookvalueusingkmedoidsalgorithm AT raissaamandaputri stockgroupingbasedonpriceearningsratioandpricebookvalueusingkmedoidsalgorithm |