#TITLE_ALTERNATIVE#

• Main Author: RAMA PUTRA (NIM 19005066), REDHO
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/11229
• Institution: Institut Teknologi Bandung

Indonesia stock exchange is one of the markets that are considered as a major capital market in the world. The capital market in Indonesia is growing significantly in recent time. In 2007, IDX had shown a remarkable performance through the significant increases in all of its trading indicators. At the end of 2007, IHSG/composite index, increase 51.74% compared to the closing index at the end of 2006.<p> <br /> <br /> <br /> <br /> The stock market capitalization value at the end of 2007 in BEI also increases by 58.69% from the market capitalization in 2006. The daily trading frequency which increase as much as 142.68%, from 19.880 times per day at 2006 to 48.244 times per day at 2007. This achievement placed IDX as one of the best performance Bourses in Asia Pacific and even in the world.<p> <br /> <br /> <br /> <br /> At the end of 2007, the main issue in the economic sector is the increase of world oil price. This issue makes the stock from the companies that do business in energy, mining, and agriculture sector attracts the attention of investors. At that range of time, the sectors in IDX stock exchange that got the most positive impact from the increase of world oil price is the mining sector.<p> <br /> <br /> <br /> <br /> The fact that mining sector is the sectors which got the most positive impact from the increase of oil price is surely making the investor focus their investment in the mining company, and they should know which company's stock from mining area to be chosen for their investment. After that, the researcher does a stock valuation analysis to get the right stock to be chosen in the mining sector when the world oil price increases using fundamental analysis.<p> <br /> <br /> <br /> <br /> In do the analysis, the researcher makes a valuation using the free cash flow and discounted dividend model. From all the result data, the researcher get that the company's stock is not traded at their fair value at the market. The stock price in the current market does not show the real performance of the company. The stock valuation method and assumption for one company can be different with the stock valuation method and assumption for the other companies. The current performance of the company is giving a significant impact to their stock calculation. It's hard to do a stock valuation when the company performance is unstable and decrease in recent years.<p> <br /> <br /> <br /> <br /> After finishing the calculation and make the analysis, then the researcher recommend the investor to buy MEDC stock. After that, the researcher recommend the investor to wait and see before buy the MEDC stock because the undervalued result for MEDC is based on the assumption when their performance not decrease yet. Since now their EPS is decreasing in last two years and the uncertainty at the market, the researcher recommends the investor to wait and see before buy MEDC stock.