Investment Decision Using Capital Asset Pricing Model (CAPM) in Indonesia’s Banking Sector

The focus of this research was to determine and investigate the application Capital Asset Pricing Modeling (CAPM) technique in analyzing investment decisions particular banking stocks that specialize digital operating models. Investors generally follow IT or sector (Tech stocks) due sector's track record delivering high returns promise for even greater future. In sector, investors continue pursue bank as their holdings because they believe may create value expand. Six were chosen study, all which are listed on Indonesian Stock Exchange have an observation period April 2021 March 2022. These Bank Jago Tbk, Neo Commerce Danamon Permata BTPN OCBC NISP Tbk. This uses linear regression analysis beta coefficient method compares expected return stock market's rate during order further differentiate between undervalued overvalued stocks. study found two six companies had higher than (undervalued/efficient stocks), namely Commerce, with remaining four categorized overvalued/inefficient.