EQUITY VALUATION OF PT INDUSTRI JAMU DAN FARMASI SIDO MUNCUL TBK. USING DISCOUNTED CASH FLOW METHOD

• Main Author: Dwi Fitrianto, Nugroho
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57310
• Institution: Institut Teknologi Bandung

Established in 1951 in Semarang, with the name "Sido Muncul" which means "Dream Come True", PT Industri Jamu dan Farmasi Sido Muncul Tbk. (SIDO) first produced and sold jamu "Tolak Angin" in the form of powder in packaging. Currently, Sido Muncul has a wider scope of business activities, which include herbal medicine and pharmaceutical industry, trade in imports and exports, and agriculture includes the conservation of medicinal plants as herbal medicine and cosmetics. Sido Muncul shares are listed on Indonesia Stock Exchange under the ticker code (SIDO). The research aims to analyze the intrinsic value of Sido Muncul, then compare it with the share price of Sido Muncul in the market. Valuation is done by Discounted Cash Flow (DCF) method, and cash flow calculation is done by the Free Cash Flow to Firm (FCFF) method. With these methods, it was found that the intrinsic value of PT Industri Jamu dan Farmasi Sido Muncul Tbk. is Rp 506.82,- per share, this value is lower than its value in the market of Rp 710,- per share. From this analysis, investors are advised to sell shares of PT Industri Jamu dan Farmasi Sido Muncul Tbk. in order to avoid the risk of capital loss due to the decline in the share price.