ASSESSING FINANCIAL PERFORMANCE AND FIRM VALUATION OF PT. BLUE BIRD TBK THROUGH THE DISRUPT OF ONLINE TRANSPORTATION

• Main Author: Auzan Hidayat, Rafif
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49575
• Institution: Institut Teknologi Bandung

Along with the development of technology, many changes occur in our lives. This condition also happens to businesses in the transportation sector, one of them is conventional taxi services. Along with the entry of “online transportation” mode, conventional taxi services have been disrupted with a new competition in the same line of business. In 2017, of the 32 taxi companies that are available in Jakarta, only 4 companies remain their operation (Sugianto, 2017). PT. Blue Bird Tbk as the largest taxi operator in Indonesia also get affected with this issue as the net revenue has been decreasing in the past few years. The declining trend also happened with the share price of this firm (BIRD) who is gradually decreasing over the years. This research will assess PT. Blue Bird Tbk financial performance within the year 2015 until 2019, when the online transportation started to enter Indonesian market. The research will be using financial ratio analysis and Dupont analysis. The performance of PT. Blue Bird Tbk will be compared with its competitor in the same line of business that are listed in Indonesia Stock Exchange, which is PT. Express Transindo. Beside assessing financial performance, this research will also conduct firm valuation of PT. Blue Bird Tbk to see whether the firm is undervalued or overvalued. The objective of this research is to analyze the financial performance analysis of PT. Blue Bird Tbk, estimate the intrinsic value of its share price, and give recommendation to improve its performance in the future. The result of this research shows that PT. Blue Bird Tbk performance has been averagely showing a decline from 2015 until 2019. However, the performance is still above its industry average which has showing a greater decline. Discounted Cash Flow valuation has shown that PT. Blue Bird Tbk (BIRD) intrinsic value is overvalued compared to its market value. This study also provides recommendations to PT. Blue Bird Tbk to diversify its business, increasing its operating efficiency, and monitor its cost of debt and equity to obtain optimal capital structure.