STOCK VALUATION OF PT ANEKA TAMBANG TBK BY USING FREE CASH FLOW VALUATION AND RELATIVE VALUATION

• Main Author: Frans Jordan Girsang, Daniel
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/63205
• Institution: Institut Teknologi Bandung

Investment in the capital market, especially in the mining sector, is one of the investments with high risk, so analysis is needed to produce the right investment decisions. Moreover, in uncertain world economic conditions, investors tend to turn to safe assets such as buying gold. This has an impact on the sales of PT Aneka Tambang Tbk where the contribution of gold sales was 71% of the company's total net sales in 2020. In early January 2021, the share price of PT Aneka Tambang Tbk increased significantly from Rp720 at the beginning of 2020 to Rp3.180 per share. This significant increase was due to the cooperation in the electric battery factory project between the Indonesian government and the LG Energy Solution company. This research was conducted to calculate the intrinsic value of PT Aneka Tambang Tbk based on the company's fundamentals with free cash flow valuation methods and relative valuation. The purpose of this study is to provide investment recommendations to investors before buying, selling, or maintaining investments through shares of PT Aneka Tambang Tbk. Based on the analysis using the Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE) valuation methods, the intrinsic value of PT Aneka Tambang Tbk is Rp977/share and Rp697/share. From these calculations, it was found that the intrinsic value of PT Aneka Tambang Tbk is more expensive than the price on the secondary market, which is Rp2.380 per share. This is also supported by the relative valuation results where the Price to Earning (P/E), Price to Book Value (PBV) and Enterprise Value to EBITDA (EV/EBITDA) of PT Aneka Tambang Tbk are quite expensive. Therefore, it is recommended to investors to postpone their investment and to investors who have already invested in PT Aneka Tambang Tbk to realize a profit because the share price may decrease in intrinsic value.