Integration of Fundamental and Technical Analysis for Stock Investment Decision Making: Evidence from LQ45 Companies Listed on the Indonesia Stock Exchange

Abstract

Investment decisions in the capital market require analytical approaches capable of assessing both company quality and market timing. Fundamental analysis provides information regarding the intrinsic value and financial performance of a company, whereas technical analysis assists investors in identifying the optimal timing for buying and selling stocks. However, relying solely on one approach may produce less optimal investment decisions. This study aims to integrate fundamental and technical analysis in determining stock investment decisions for companies included in the LQ45 Index on the Indonesia Stock Exchange. The study employed a descriptive quantitative approach using secondary data obtained from annual financial reports and historical stock prices during the 2022–2025 observation period. Fundamental analysis was conducted by evaluating ten financial ratios, including Price Earnings Ratio (PER), Book Value per Share (BVPS), Return on Equity (ROE), Dividend Payout Ratio (DPR), Dividend Yield (DY), Price to Book Value (PBV), Current Assets (CA), Gross Debt to Sales (GDS), Current Ratio (CR), and Earnings per Share (EPS). Stocks with the highest fundamental scores were subsequently analyzed using Moving Average (MA), Moving Average Convergence Divergence (MACD), and Bollinger Bands to identify market trends and trading signals. The findings indicate that integrating both analytical approaches provides a more comprehensive investment decision framework.