STOCK VALUATION OF PT. EAGLE HIGH PLANTATIONS, TBK

• Main Author: Vincent Perangin-angin, Nico
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47352
• Institution: Institut Teknologi Bandung

In 2017, Federal Land Development Authority (FELDA), Malaysian government’s company acquired 37% of PT. Eagle High Plantation’s shares, Tbk (BWPT). That acquisition was the third bigest acquisition in Indonesia in 2017. The acquisition was concluded for US$ 500 million or arround Rp 580 per share. That acquisition price considered too high (95% above market price). After the acqusition, PT. Eagle High Plantations’s share price decline and cause FELDA suffer loss for almost US$ 300 million. This research aims to calculate PT. Eagle High Plantation’s share price inrinsic value after FELDA acquired 37% shares. Analyze the company’s financial performance using financial ratio analysis. Absolute valuation model is used to calculate BWPT’s share intrinsic value at the end of 2018. Valuation is done by Discounted Cash Flow (DCF) method. After doing analysis for PT. Eagle High Plantations, Tbk’s share with absoulute valuation method, results for PT. Eagle High Plantations’s share intrinsic value at the end of 2018 is Rp 234,- per share. Based on that result, the conclusion is PT. Eagle High Plantation’s share undervalued now. PT. Eagle High Plantation’s share has potential upside for 43.5%, so recommendation for investor is “buy” BWPT’s share.