STOCK VALUATION AND BUSINESS PERFORMANCE OF PT ULTRAJAYA MILK INDUSTRY, TBK

• Main Author: Adam, Fahmi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47790
• Institution: Institut Teknologi Bandung

Indonesia is a developing country in Southeast Asia which has a population of no. 4th largest after China, India and the United States with a population of 271,368,279 inhabitants. The demographic surplus is predicted to be 330,904,664 inhabitants in 2050 and Indonesia can be the potential economic power of large countries in Asia, even the world. With the purchasing power of consumers who are dominated by the productive age population. The purchasing power has increasing and make more affordable for the consumer higher consuming that will make benefit to the PT Ultrajaya Milk Industry, Tbk position as the leading producer of dairy milk and healthy drinks product. As a public listing company in the Indonesia Stock Exchange, PT Ultrajaya Milk Industry, Tbk (ULTJ) face the global economic slowdown situation. Corona virus pandemics make changing to the global economy condition. It may impact the sudden redemption of funds in the stock market then the stock market may become bearish and crashed in that situation. In another point of view, it is become an opportunity to collect good fundamental stock with lower prices in bearish market conditions. However, the research using the secondary data from ULTJ annual report 2018 and ULTJ public expose 2018 with secondary data provider like investing.com and stockbit.com. The data was processed and using methodology by absolute valuation method (Discounted Cash Flow) and the relative valuation method (EV/EBITDA and Price Earnings to Ratio). The intrinsic value of ULTJ’s firm is IDR. 1.387 / share by using Discounted Cash Flow model. It has margin of safety 13.18% to the market price per share is IDR. 1.225: close price 20 March 2020. The intrinsic value from relative valuation price to earnings ratio is IDR.1.148 / share and relative valuation EV/EBITDA is IDR. 1.594/ share. After the valuation process, the author may figure out the interconnection of ULTJ fundamental company to its stock price growth.