A VALUATION AND FINANCIAL ANALYSIS OF PT. BHIRAWA STEEL

• Main Author: Aryadi, Arry
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/64002
• Institution: Institut Teknologi Bandung

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.