A VALUATION AND FINANCIAL ANALYSIS OF PT. BHIRAWA STEEL
The performance of PT. Bhirawa Steel dropped since 2015, until it went out of production in 2017. After the acquisition of ownership of 65% shares by PT. Hakaaston (35% owned by the former shareholders), then in 2019 it started production and there was an increase in performance. The perfor...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/64002 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The performance of PT. Bhirawa Steel dropped since 2015, until it went out of
production in 2017. After the acquisition of ownership of 65% shares by PT.
Hakaaston (35% owned by the former shareholders), then in 2019 it started
production and there was an increase in performance.
The performance of PT. Bhirawa Steel is analyzed by calculating the intrinsic
value and financial ratio with a base year of 2020. SWOT and Porter's Five
Forces Analysis are also done. The intrinsic value was calculated by using the
Discount Cash Flow approach. The the intrinsic value of PT. Bhirawa Steel
shows a higher value compared to the book value, besides that the financial ratios
are also better than the performance before the acquisition. The SWOT shows the
positioning of PT. Bhirawa Steel is in the “stabilization” quadrant, while the
external situation varies from low to high.
The calculation of intrinsic value uses the Discount rate approach. From the
results of these calculations, it is found that the intrinsic value of PT. Bhirawa
Steel, based on the base year Financial Statements for 2020, is Rp. 1,278,652, -
(in millions), while its book value is Rp. 1.009.652,- (in millions). This shows that
the intrinsic value is 1.27 times greater than the book value.
Based on data analysis of Financial Statements 2 years before (2017 and 2018)
and after (2019 and 2020) the acquisition of 65% shares of PT. Bhirawa Steel, the
performance of PT. Bhirawa Steel experienced an increase, among others, the
current ratio which increased from 0.13 in 2017 to 1.31 in 2020, which shows that
the company is able to pay its debts with its current assets. Meanwhile, the debt to
equity ratio decreased significantly from 2.66 to 0.55, which means that the
company's capital structure is 2 (two) times larger than debt. |
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