This study investigates the effect of undervaluation and cash holdings on likelihood of share repurchase decision using Indonesian listed companies’ data from 2009 – 2015. Contrast to previous studies, this study measures the undervaluation using residual of Ohlson (1995) models based on yearly and panel regression.  The result of this study shows that undervaluation and cash holding increase the likelihood of share repurchase decision. Furthermore, this study also found that cash holding strengthen the effect of undervaluation on likelihood of share repurchase decision. Further research is suggested to avoid direct application of price to book ratio as undervaluation proxy since it has measurement error. Finding of this research can be employed in investment strategies and supportive regulation development.