UNDERVALUED STOCK WITH OUTSTANDING PERFORMANCE: STOCK VALUATION OF PT WASKITA KARYA TBK IN INDONESIA’S ECONOMY RECOVERY

• Main Author: William Namora Sinaga (NIM 19014093 ), Kevin
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22801
• Institution: Institut Teknologi Bandung

Gross Domestic Product growth is often related with the economic standing of a nation. In the past few years, Indonesian GDP growth has been declining with no signs of rebound. Following previous researches that state GDP growth is closely related to infrastructure growth, this paper aims to study one of the big four players in infrastructure industry following the government and foreign support towards the sector. PT Waskita Karya Tbk is currently the market leader of the mentioned sector, overtaking the previous leader PT Pembangunan Perumahan Tbk in 2016. This thesis examines the financial performance of PT WSKT using several methods such as industry, CAGR, cross-section, DuPont, and other financial analysis followed by estimation of WSKT.JK intrinsic value using both relative valuation and Discounted Free Cash Flow to Equity Model. The data needed to analyze in this research are based on the <br /> <br /> data available to public in the company’s website and third party financial institutions. It was found that the financial performance of PT WSKT has been superb with few flaws compared to its competitor. According to relative valuation, the company is undervalued. <br /> <br /> It was also supported by the intrinsic value estimates using DCF-FCFE that concluded the current stock price of WSKT.JK is undervalued with the upside potential of 42.75%. It was also found that the share’s price is very sensitive towards the changes in terminal growth and cogs as % of revenue.