IMPACT OF INTERNATIONAL MOBILE EQUIPMENT IDENTITY POLICY TO STOCK PRICE (A CASE STUDY OF PT ERAJAYA SWASEMBADA, TBK)
PT Erajaya Swasembada, Tbk (ERAA), is one of the retail companies in Indonesia and listed on the Indonesia Stock Exchange. PT Erajaya Swasembada, Tbk is currently not only one of the largest companies integrated importer, distribution and retail trading of mobile telecommunication equipment, but als...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/45914 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | PT Erajaya Swasembada, Tbk (ERAA), is one of the retail companies in Indonesia and listed on the Indonesia Stock Exchange. PT Erajaya Swasembada, Tbk is currently not only one of the largest companies integrated importer, distribution and retail trading of mobile telecommunication equipment, but also one of the most trusted companies in its business in Indonesia. Currently, Erajaya Group conducts business activities importer, distribution, and retail trading of mobile telecommunications devices such as cellular phones and tablets, Subscriber Identity Module Card, refill vouchers of mobile network operators, accessories, Internet of Things devices, and others. Mobile phone and tablet sales predicted to increase in the next few years, and this is due to the International Mobile Equipment Identity policy issued by the Government of Indonesia, which will implement at the beginning of the year 2020.
Assessing the financial performance and intrinsic assessment of ERAA believe to be very important to know how investors should act. This research conducts to see the impact of the International Mobile Equipment Identity (IMEI) policy on the stock price of ERAA. The valuation process in this study conduct using an absolute model, to know whether the shares of PT Erajaya Swasembada, Tbk (ERAA) are undervalued or overvalued compared to the market price.
After the valuation process is done, ERAA shares obtained intrinsic value amounting to IDR 2,055.78 per share, with a potential upside of 21.28% with the current price IDR 1695. Based on the Monte Carlo simulation, the certainty for buy recommendation is 64.2%, the result of this study is that investors are recommended to buy ERAA shares because ERAA shares are still undervalued by the market.
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