STOCK VALUATION OF PT NIPPON INDOSARI CORPINDO, TBK. ON CAPITAL RAISING THROUGH RIGHTS ISSUE

• Main Author: ANWAR 29115258 , DAVID
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/21588
• Institution: Institut Teknologi Bandung

Since the company publish the right issue plan through its official website then no longer <br /> <br /> after that the stock price of ROTI dropped for more than 30% from its peak price at Rp <br /> <br /> 1,760 to be Rp 1,195. Even though the right issue purpose is to get additional capital for <br /> <br /> working capital and expansion such as build new factory outside Java island like in east <br /> <br /> Indonesia region and in Phillipines but it looks like the investor give negative respond to <br /> <br /> this plan. It makes sense since right issue will create much paid capital than before. Since <br /> <br /> the right issue detail is not published yet although it was already approved then it <br /> <br /> becomes the speculation in the capital market that is why it affected to the company stock <br /> <br /> price. <br /> <br /> <br /> The purpose of this research is to estimate the reasonable stock price of PT Nippon <br /> <br /> Indosari Corpindo, Tbk (ROTI) for year 2017 according to historical data in 2010 – 2016, <br /> <br /> and then compare it with the existing stock price in order to know that PT Nippon <br /> <br /> Indosari Corpindo, Tbk (ROTI)’s stock price is undervalue or overvalued for investor <br /> <br /> decision making buy, hold or sell. <br /> <br /> <br /> In this thesis, it will be used stock valuation approach such as Gordon Growth Model. <br /> <br /> Based on Gordon Growth Model known that the fair share price is Rp 1617.39. <br /> <br /> <br /> The result of this study by using Gordon Growth Model of fair stock price of PT Nippon <br /> <br /> Indosari Corpindo, Tbk is Rp 1,104.19 per share. Based on the IDX data that obtained <br /> <br /> from yahoo finance. The closing price for ROTI on Friday, December 30 <br /> <br /> , 2016 is Rp <br /> <br /> 1,600. Since the fair stock price of ROTI is about RP 1,617.39 so it means that the current <br /> <br /> ROTI’s stock price still below the fair stock price. It could be said that ROTI’s stock <br /> <br /> price is undervalue.