VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD

The rapid rise in popularity of the Korean Wave (Hallyu) of South Korean entertainment and culture, is sweeping the globe. HYBE Co. Ltd is considered as a strong player in the Korean entertainment industry since they record an all-time highest operating profit of 130.1 billion won in 2020, surpas...

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Main Author: Aunura Ramadhanti P., Qinthara
Format: Final Project
Language:Indonesia
Online Access:https://digilib.itb.ac.id/gdl/view/61066
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Institution: Institut Teknologi Bandung
Language: Indonesia
id id-itb.:61066
spelling id-itb.:610662021-09-22T21:49:13ZVALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD Aunura Ramadhanti P., Qinthara Indonesia Final Project Free Cash F/low to the Firm, HYBE Co., Ltd, Valuation INSTITUT TEKNOLOGI BANDUNG https://digilib.itb.ac.id/gdl/view/61066 The rapid rise in popularity of the Korean Wave (Hallyu) of South Korean entertainment and culture, is sweeping the globe. HYBE Co. Ltd is considered as a strong player in the Korean entertainment industry since they record an all-time highest operating profit of 130.1 billion won in 2020, surpassing all of the other publicly-listed companies in the industry, namely SM, YG and JYP Entertainment. However, despite performing the best compared to their competitors, HYBE is perceived to be overvalued. Therefore, further assessment is important to conduct in order to know whether the company is overvalued or undervalued. The methodology that is used for this research is Discounted Cash Flow with Free Cash Flow to the Firm method. According to the result, the intrinsic value for HYBE Co., Ltd. is KRW109,677 which is less than the share price of KRW160,000. Therefore, the company is overvalued by the market, in which the author will provide recommendations for investors text
institution Institut Teknologi Bandung
building Institut Teknologi Bandung Library
continent Asia
country Indonesia
Indonesia
content_provider Institut Teknologi Bandung
collection Digital ITB
language Indonesia
description The rapid rise in popularity of the Korean Wave (Hallyu) of South Korean entertainment and culture, is sweeping the globe. HYBE Co. Ltd is considered as a strong player in the Korean entertainment industry since they record an all-time highest operating profit of 130.1 billion won in 2020, surpassing all of the other publicly-listed companies in the industry, namely SM, YG and JYP Entertainment. However, despite performing the best compared to their competitors, HYBE is perceived to be overvalued. Therefore, further assessment is important to conduct in order to know whether the company is overvalued or undervalued. The methodology that is used for this research is Discounted Cash Flow with Free Cash Flow to the Firm method. According to the result, the intrinsic value for HYBE Co., Ltd. is KRW109,677 which is less than the share price of KRW160,000. Therefore, the company is overvalued by the market, in which the author will provide recommendations for investors
format Final Project
author Aunura Ramadhanti P., Qinthara
spellingShingle Aunura Ramadhanti P., Qinthara
VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD
author_facet Aunura Ramadhanti P., Qinthara
author_sort Aunura Ramadhanti P., Qinthara
title VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD
title_short VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD
title_full VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD
title_fullStr VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD
title_full_unstemmed VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD
title_sort valuation of hybe co. ltd. using free cash flow to the firm method
url https://digilib.itb.ac.id/gdl/view/61066
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