Telkom Valuation To Measure The Market Capitalization In 2020

• Main Author: Apriliani Kartika 29116364, Yunia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/31830
• Institution: Institut Teknologi Bandung

Today's digital era has touched the whole field to keep up with its development. The shift from the legacy function (Phone and SMS) to OTT (over the top) was in the spotlight of many parties, especially telecommunication companies. Occupying the position of the fourth most populated country in the world, Indonesia certainly has a huge economic opportunity. The Government of Indonesia also responded positively to this matterby projecting Indonesia to become Southeast Asia's largest digital economy by 2020. This is the impetus of TLKM as the largest telecommunication company in Indonesiaorder to transform into the largest digital telecommunications company in Asia Pacific and optimistic will have a market capitalization of IDR1,000 trillion in 2020. Looking at the situation in 1Q18, TLKM stock prices continued to fall from IDR4,400 by the end of 2017 to IDR3,420 on May 21st, 2018, making the TLKM keep on improving its performance. Therefore, a valuation is needed to provide an overview of the TLKM value estimate by 2020. <br /> <br /> In this research, the valuation is done by using two methods namelyAbsolute Valuationbased onDiscounted Cash Flow to Firm (DCFF) andRelative Valuationbased onHistorical PER.The analysis is conducted with fundamental analysis using a top-down approach that is supported by historical data for 10 years from 2008 to 2017. <br /> <br /> Based on the valuation, TLKM has not reached its market capitalization of IDR1,000 trillion by 2020. <br />