Test of FCFE Model and Dividend Discount Model in Book 4 Banking Companies Listed in Indonesia Stock Exchange

— The banking industry is one of the industries that shares in great demand by the people who will invest in the capital market. Not only interested by local investors but also even banking industry stocks are in great demand from foreign investors. The purpose of this research is to know the fair price of shares in banking companies in 2017 by using the method of Free Cash Flow to Equity on the growth scenario in pessimistic, moderate and optimistic conditions and to know the fair price of shares in banking companies, in 2017 by using Dividend Discount Model Method. The sampling technique used purposive sampling and chose 4 Banking Com panies which entered into book 4 category as research sample. Finding from this research shows that, using FCFE Model BBNI, BMRI and BBCA are undervalued, that stock market price is lower than fair value of company stock, while BBRI show overvalued and by using DDM calculation method all stock show undervalued. If it is known whether the stock is undervalued, fair valued, or overvalued, then the investor can be more confident to determine his investment decision. Whether the stock wants to be bought, retained or sold.