Every country considered investment as their essential need in development of their country.
Every country are in need and aspire to gain investment in every sub sector of industry given.
In analyzing and measuring the kind of investment that are good and risky, there are many
ways that can be done to measure it. This study aimed to measure and analyze Cosmetic and
Household sub sector of the Indonesian Stock Exchange using Capital Asset Pricing Model.
The sample used is active companies in stock transaction, such as: MRAT, MBTO, UNVR and
TCID listed in Cosmetic and Household sub sectors. Based on the results of the study and after
analyzing the cosmetic and household sub sector of the Indonesian Stock Exchange using
Capital Asset Pricing Model, the study suggest that for stocks that are overvalued, it is
recommended for investors to sell or release their stocks such as: TCID and MRAT. On the
other hand for companies with undervalued stocks, the recommendation of the study is for
investors to buy or purchase the stock such as MBTO and UNVR based on the period observed
from December 2015 to July 2016.