FINANCIAL PERFORMANCE AND STOCK VALUATION OF PT BANK CENTRAL ASIA TBK
A bank has a vital role in a country. Banks can boost the economy by collecting funds from the community and channeling them back in loans for working capital. So, it will provide a multiplier effect on the economy. Because of its important role, each country has a central bank that functions to mai...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/57765 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | A bank has a vital role in a country. Banks can boost the economy by collecting funds from the community and channeling them back in loans for working capital. So, it will provide a multiplier effect on the economy. Because of its important role, each country has a central bank that functions to maintain the banking sector's stability. Bank Indonesia (BI), as the central bank in Indonesia, issues various regulations in carrying out its functions, including those concerning its health. Several financial ratios related to bank health show that Bank Central Asia Tbk (BCA), one of Indonesia's largest private banks, is included in the very healthy bank category in 2020.
BCA stock is the largest market capitalization in Indonesia, and its price is the highest in the banking sector. BCA's Price to Book Value (PBV) ratio of 4.41 is the highest compared to other BUKU IV banks as of April 25, 2021. BCA's average PBV ratio over the last ten years has reached 4.14. BCA's Price to Earnings Ratio (PER) of 28.54 is the second highest. BCA's PER has an average of 21.75 in the last ten years. BCA's PBV and PER show that BCA's stock price is overvalued based on relative valuation.
Using the Excess Return Model as a model to perform absolute valuation, BCA's stock price valuation shows an undervalued price.
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