FROM VALUATION TO OPTIMIZATION: STRATEGI INVESTASI BERKELANJUTAN DENGAN DDM DAN MARKOWITZ MODEL

Abstract

Abstract Climate change and global warming are driving a shift toward sustainable investments. The Indonesian government and the Indonesia Stock Exchange (IDX) have implemented policies to reduce carbon emissions, including launching the IDX LQ45 Low Carbon Leaders index to promote low-carbon investments. In line with this trend, interest in sustainable investment is growing, with ESG-based assets reaching USD 35 trillion globally. This study analyzes stock valuation using the Dividend Discount Model (DDM) on the IDX LQ45 Low Carbon Leaders index and constructs an optimal portfolio using the Markowitz Model approach. Among the sixteen undervalued stocks analyzed, seven were selected for the optimal portfolio with the following fund allocation: AMRT (9%), BBCA (28%), BBNI (6%), BMRI (1%), ICBP (14%), INDF (26%), and UNTR (16%). This portfolio yields an expected return of 0.35% with a risk level (standard deviation) of 0.82%, reflecting an optimal investment strategy for managing risk and maximizing returns. The combination of the DDM and Markowitz Model provides a comprehensive approach, serving as a reference for investors in making informed investment decisions and constructing an optimal and sustainable stock portfolio.