ABSTRACT : Stocks are one of the most popular investment instruments among Indonesians. One of the companies that has good performance is the banking sector. Allo Bank is one of the banks with a new business model that is digital banking. Allo Bank shares continue to decline even though Allo Bank’s profits have continued to increase for several years. Investors are looking for stocks that miss valuation. Allo Bank recorded very good performance based on the risk-based banking method. However, Allo Bank shares are still considered overvalued by the market when viewed from their intrinsic value which has been analyzed using the dividend discounted model (DDM) method.
KEYWORDS – Digital Bank Indonesia, Allo Bank Indonesia, Bank Performance, Risk Based Banking Method, Dividend Discounted Model Valuation