Equity Valuation of The bank bjb 2018: Fundamental and Technical Aspects

• Main Author: Akbar Paneguh / 29115097, Panji
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29906
• Institution: Institut Teknologi Bandung

EQUITY VALUATION OF THE BANK BJB 2018 : <br /> <br /> FUNDAMENTAL AND TECHNICAL ASPECTS <br /> <br /> <br /> PANJI AKBAR PANEGUH <br /> <br /> 29115097 <br /> <br /> <br /> Date of Passing of Final Examination: July 31st 2018 <br /> <br /> Date of Graduation: October 19th2018 <br /> <br /> Master’s Programme, Institut Teknologi Bandung <br /> <br /> Final Project Advisor: Anggoro Budi Nugroho, MBA <br /> <br /> <br /> ABSTRACT <br /> <br /> <br /> <br /> Bank bjb is regional own enterprise, with functions to improve the regional economy, manage the local government money and become local government source of revenue. Bank bjb is also a bank that has been listed in the stock exchanges. In addition bank bjb is also the bank with the thirteen largest assets in Indonesia <br /> <br /> This final project aims to look at external factors that affect the banking industry, to see the performance of bank bjb by comparing with competitors, valuating bank bjb’s shares, and provide suggestions for stakeholders. This research begins by assessing business issues using external and internal analysis for strengths, weaknesses, opportunities and threats for bank bjb. From there, it was found that stable economic growth, the role of OJK and BI, and financial technology became a good opportunity for bank bjb to expand. However, the political conditions until 2019, as well as the issue of “riba” become a threat to the Indonesian banking industry. From internal, it can be seen that bank bjb is a bank that has the best financial performance compared with its competitors. <br /> <br /> This research is then continued by valuating the company. Company valuation with fundamental analysis (company condition) is done by discounted cash flow, free cash flow to equity, market ratio, and dividend discounted model. From several valuation models, the average value of bank bjb stock is IDR 2,448. This value is 20% higher than the current bjb bank stock price at IDR 2,040. <br /> <br /> With a higher value, it can be concluded that bank stock bjb is still in undervalued category. With this assumption it can be concluded that buying shares of bank bjb can still benefit for investors. However, the technical analysis from bank bjb stock historical price using MA, RSI and SO suggest investor to hold position. In addition, bank bjb management can increase this value by executing the company's expansion strategy to outside west Java using both fintech and conventional strategy. This strategy should also be supported by the local government of West Java. <br /> <br /> <br /> <br /> Keywords: Stock, Bank, Financial Ratio, Valuation.