COMPANY VALUATION ANALYSIS ON PT BINUANG MITRA BERSAMA IN PREPARATION OF INITIAL PUBLIC OFFERING (IPO)

• Main Author: Herdiansyah, Yayan
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35497
• Institution: Institut Teknologi Bandung

IPO is a means for companies to get funds in the capital market by issuing shares. Before conducting an IPO, the companies need to conduct an assessment to understand the business conditions that affect the company so that they can find out the current position and the prospects of the company in the future. This research is focused on determining the intristic value of PT Binuang Mitra Bersama. The research begins with an analysis of macroeconomic conditions, then analyzes the condition of the industry using Michel Porter's Five Forces model and finally analyzes the company's internal conditions with SWOT, financial analysis and valuation with discounted cash flows and relative valuations Based on macroeconomic analysis, global and dometic conditions show positive prospects for the growth of the mining industry in Indonesia. Based on Michel Porter's five forces analysis, the coal mining industry is still attractive with competition between companies in industriy is relatively moderate, the threat of new entrants is low, the threat of substitute products is moderate, , bargaining power of buyers is high and bargaining power of suppliers is moderate Based on SWOT analysis, PT BMB understand the internal and external environment which includes strengths, weaknesses, opportunities and threats that can help companies to adjust their competitive strategies to deal with future business dynamics. Based on the results of the analysis of financial ratios, BMB is relatively capable of managing its finances well where the company's financial ratio is almost the same as the industry average. The valuation using discounted cash flow method with free cash flow to equity gives an indication of share price of 1,019 IDR while relative valuation method gives an indication of share price of 477 IDR. Thus the average share price using these two methods is 748 IDR Recommendations for PT. Binung Mitra Bersama is in determining the share price needs to be carefully considered, because an undervalued or overvalued share price will creates potential losses for the company because the funds obtained from IPO are not optimal. The results of this study can be used as a reference in stock pricing in the IPO plan of the company in 2019.