BANK MANDIRI STOCK VALUATION USING FREE CASH FLOW TO EQUITY (FCFE) AND DIVIDEND DISCOUNT MODEL (DDM)
<p align="justify">This study was conducted to determine the intrinsic value of the Company's stock price using the Free Cash flow to Equity (FCFF) valuation model and Dividend Discount Model (DDM). The company to be valued is Bank Mandiri which is the largest bank by asset in I...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/26449 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | <p align="justify">This study was conducted to determine the intrinsic value of the Company's stock price using the Free Cash flow to Equity (FCFF) valuation model and Dividend Discount Model (DDM). The company to be valued is Bank Mandiri which is the largest bank by asset in Indonesia. In 2016, its net profit declined by 70.4% compared to 2015, which could affect Bank Mandiri's share price. To know this, then conducted valuation of Bank Mandiri's stock price to determine whether the performance of bank Mandiri affected its share price. <br />
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The calculation of the intrinsic value of Bank Mandiri shares using FCFE model is Rp.6.607,- while the DDM is Rp 15.727- <br />
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Both of these valuation models conclude different results, which are overvalued when using FCFE valuation methods and undervalued when using the DDM valuation method. <br />
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Investors are given the discretion to vote and are advised to use one other method for valuation of Bank Mandiri stock price so that it will provide more confidence whether the Bank Mandiri stock will provide long-term benefit. <p align="justify"> <br />
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