VALUATION OF PT. XL AXIATA TBK's SHARES ASSOCIATED WITH SALES OF 19.8% SHARE INDOCEL HOLDING SDN.BHD

• Main Author: CHANDRA (NIM : 29107187); Pembimbing: Ir. Maryat Nirwandi, MBA, ANDI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/17931
• Institution: Institut Teknologi Bandung

In Indonesia, the telecommunication industries have highest level of competition than others. However, telecommunication is also the fastest growing industries in Indonesia. Therefore, many local and foreign investors who invest in these industries. <br /> <br /> <br /> PT. XL Axiata Tbk (XL), as one of the largest telecommunication operator in Indonesia, sold 19.8% of Indocel Holding Sdn.Bhd's stakes on April 5th, 2010. Total shares of PT. XL Axiata Tbk owned by public which previously only 0.2% raised to 20%. The selling price per share on April 5th, 2010 was Rp3300. <br /> <br /> <br /> This final project was aimed to find the intrinsic value of XL's shares and compare it to the selling value of XL's shares on April 5th, 2010. Valuation method used was the Discounted Cash Flow (DCF) with a model of Free Cash Flow to Firm (FCFF) and relative valuation method by using multiples of earnings variable i.e. Price Earning Ratio (PER). From the two valuation methods informed whether the value of shares was undervalued or overvalued. <br /> <br /> <br /> The intrinsic value of XL's share from FCFF model was Rp5905.95/share and the intrinsic value of XL's share from Relative Valuation Method was Rp4781.38/share. <br /> <br /> <br /> Analysis of company information and market information is one of the main and most important factors in the success of a stock valuation.