VALUATION FOR PTPP CONCERNING THE DECLINING STOCK PRICE

• Main Author: Ronald, Parialan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/47205
• Institution: Institut Teknologi Bandung

PTPP reached a steady increasing revenues and profit since 2014-2018. The Company’s operating revenues were obtained from Construction Services, EPC (Engineering, Procurement, Construction), Property, Infrastructure, Energy, Pre-cast, and MBR Residential, as well as heavy equipment-based contractors. Overall, in 2018 PTPP managed to record an operating revenue of Rp25.1 trillion, grew 16.8% from Rp21.50 trillion in 2017. Net Income grew by 13,6% in 2018 from 2017 to amount Rp.1.96 trillion. The new contract value had achieved a good performance as well by reaching Rp.43.49 trillion in 2018, compared to 2017 which in amount of Rp41,07 trillion. But in 2018, the share price has reached the lowest price in the last 4 years to amount Rp.1,330/share, declining by more than 70% from its highest price in 2017 which priced Rp.4,850/share. Nevertheless, Share price is the result of supply-demand in the stock market, This Final Project has assessed the intrinsic value of PTPP with value of IDR 1,983/share and the author would like to recommend “Buy” rating for the PTPP. The investors might have to consider the risks embedded to the construction industry such as the delayed payment from project owner, delayed in project completion, rejection from society due to environmental and social problem.