BUSINESS VALUATION IN PEER TO PEER LENDING USING DISCOUNTED CASH FLOW (DCF) METHOD (CASE STUDY: PT FINTECH KIU INDONESIA)

• Main Author: Akhirul Hakim, Muhammad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47804
• Institution: Institut Teknologi Bandung

Not all businesses can be said to be startups. Because a startup is a company initiated by a founder or individual entrepreneur to look for repeatable and measurable business models. The founders designed the startup to effectively develop and validate a scalable business model (Natalie, 2013). Funding is very important to support their fast-growing business, startups in Indonesia are looking for investors who want to invest their funds. Thus, company valuation is needed as a basis for investors to invest in a new company that is a plan or take company action. PT FINTECH KIU is a fintech company in Indonesia located in Jakarta. The company has a vision to bring happiness into life. The company is facing funding problems in its business operations so that it runs smoothly due to the fast cash flow. Company valuation is needed so that the company gets funding from outside the business, so investors can decide to invest in this company. In another opinion said that investors as providers of funds need to assess the due diligence of the companies they will invest. company valuation is needed so that the company gets funding from outside the business, then investors can decide to invest in this company. Then analyze the Net Present Value (NPV) as the feasibility of investing in this company. The purpose of this study is 1) To find out how the basic assumptions scheme is designed and the calculation of company valuations using the DCF Method with sensitivity analysis on PT FINTECH KIU. 2) Help management to be used as one of the considerations in implementing investment funds in the company. 3) Helping investors who want to invest their funds in PT FINTECH KIU to be considered about the right funds to invest. The analytical method used in this research is a case study analysis. The currency uses the Discounted Cash Flow (DCF) Method approach with NPV analysis as a feasibility study for forecasting financial projections. There are 2 data perceptions taken, namely management decisions and google analytics then company financial reporting as the basis for financial projections to find a customer base on this valuation. The results of this study are companies (called by Google Analytics) that are developing rapidly. this is evidenced by data showing that the company value is Rp. 1,110,498,354,146. Then, EV / Revenue is 74 times and the percentage increase is 99.3%. And management decision data shows us that the company's value is Rp. 46,084,735,403,742. Then, EV / Revenue is 1,748 times and the percentage increase is 100%. management decided to sell a maximum of 25% ownership or Rp. 11,521,183,850,935,5 The recommendation of the DCF method for the valuation of this company is that this study uses the Discounted Cash Flow method, so it is recommended for further research to use other methods such as the market approach, net asset approach, etc. So that many investors consider investing in PT FINTECH KIU. The company must do a lot of collaboration with other institutions to grow its performance, especially in revenue. If income grows quickly, it will automatically make a perfect judgment. Thus, the company will reach the unicorn level easily. The author suggests investors invest in companies. Because the valuation is very good. But investors can be negotiated for prices because they offer range is higher than the reality of the company's value.