THE EFFECT OF STRATEGIC MOVE TOWARDS DIGITAL BANKING ON STOCK PRICE OF BBCA

• Main Author: Noviani, Vivi
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/49881
• Institution: Institut Teknologi Bandung

PT Bank Central Asia, Tbk is the largest and best private bank in Indonesia. It was established in 1957. IPO in 2000 with the BBCA stock code. Currently, the largest shareholder is PT Dwimuria Investama Andalan by 55%, and the public owns 45% of BBCA's shares. The Indonesian stock market experienced a significant decline from the end of 2019 until June 2020 due to the Covid-19 pandemic sentiment that affected the performance of big-cap shares above Rp 100 trillion. Based on BEI data, at the end of December 2019, the total market capitalization of the JCI reached Rp 7,265.02 trillion. And in April 2020, the total capitalization was reduced very much to Rp 5,379.68 trillion. In the SWOT Analysis, the technological innovation that is being developed by BCA is a strength. That is in line with opportunity, while the target market for productive age is millennials who are very good at using technology. Predictable business. BCA can still achieve significant growth. In October 2019, BCA made the acquisition of PT Bank Royal Indonesia, which was planned to become the Digital Bank of BCA. At the end of May 2020, the rebranding news from Bank Royal gave a positive sentiment to BBCA's stock price. According to IDX data, BBCA shares shot 5.44%, and BBCA transaction value at that time reached Rp 663 billion with a trading volume of 25.46 million shares. In this study, the analysis used to assess the BBCA stock valuation is the absolute method and the relative method. From this study revealed that the BBCA stock valuation results using the absolute and relative methods are overvalued. The highest intrinsic value of this study is based on PER at the end of 2019, which is Rp 26,000.- Although the intrinsic value is overvalued, BBCA may still be an option in the investor's portfolio because there are other considerations besides calculating intrinsic value and ratios. Other reasons include brand image, stock prices tend to be stable, dividend distribution is clear. So for long-term investment, BBCA shares still make sense to be included in the portfolio.