STOCK VALUATION IMPROVEMENT OF PT. KALBE FARMA, TBK, A CASE STUDY OF COVID-19 VACCINE PRODUCTION FOR NATIONAL VACCINATION PROGRAM

• Main Author: Kurniawan Wijaya, Indra
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57889
• Institution: Institut Teknologi Bandung

PT. Kalbe Farma, Tbk (KLBF) is a pharmaceutical company in Indonesia and has been listed on the Indonesia Stock Exchange since 1991. KLBF’s revenue is much influenced by the sale of prescription drugs, over the counter drugs, and consumer health products, especially during the pandemic. In order to support the national vaccination program, company has the opportunity to participate in supplying vaccine. The Discounted Cash Flow (DCF) method is used as a primary way to do the valuation beside relative valuation. It because of the prediction of generated future cash flow using DCF is relevant, considering the risk that could impact to company’s business plan and stability. Also this method is not influenced with other company’s performance. The author’s valuation shows that the KLBF’s intrinsic value is increase 34% from IDR 1,266,- per share to IDR 1,707,- per share due to vaccine selling impact. According to DCF valuation and relative valuation, shows that the share price (as per 30 July 2021) IDR 1,260,- per share is a reasonable price, neither undervalued nor overvalued. Although the vaccine selling only gives less effect to the valuation, however, this step will open big opportunity for company in developing vaccine business. Of course, this can increase the company valuation in the future. Because of that reason, it is recommended for investors to buy the KLBF stock at current time.