VALUATION ANALYSIS ON XL AXIATA POTENTIAL STOCK PRICE IN 2020

• Main Author: Kindy Akbari Mahdy, Ahmad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/45886
• Institution: Institut Teknologi Bandung

Nowadays, telecommunication is inseparable for the society’s needs because every activity integrated with their mobile phone services. In this digital era, mobile cellular user has shifted into data services (OTT, over the top) rather than legacy services (voice and text messaging). Indonesia ranked as the fourth biggest population in the world with a promising growth in economic condition leads to high demand of telecommunication needs for the society. This condition will make the telecommunication industry projected will be growing promisingly in the future and attract the investors to invest in the telecommunication industry. PT. XL Axiata, Tbk. is one of the biggest mobile operators in Indonesia with promising performances. In 2018, due to government regulations to re-register SIM card, many mobile operators lost their subscribers, the growth of telecommunication industry fell by minus 6 percent and lead into loss in profits for the mobile operators. In 2019 the telecommunication company started to recover from the adversity shown by the stock price for the slightly increase. The objectives of this research to valuating the PT. XL Axiata, Tbk. stock price by using the Absolute Valuation based on Discounted Cash Flow (DCF) and Relative Valuation based on historical EV/EBITDA and P/E Ratio to forecast the potential stock price of XL Axiata in the end of 2020 by using 5 years historical data from 2015 to 2019. This research concludes that XL Axiata stock price in the end of 2020 still has a potential upside by valuating by two methods mentioned before.