DETERMINING THE INTRINSIC VALUE OF PT ARMINDO CATUR PRATAMA

• Main Author: Muhroni
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/64008
• Institution: Institut Teknologi Bandung

PT Armindo Catur Pratama (PT ACP) established in 1992 is a manufacturing and trading company of steel construction products. The main products of PT ACP include mobile towers, PLN transmission towers and guardrails. PT ACP was accredited by SGS Yarsley International Certification Services Limited in 1999. The company has a vision to become a leader in Indonesia and a world player in the field of steel construction. On February 10, 2020, PT ACP was acquired by PT Hakaaston with a minority shareholding of 25%. This acquisition was carried out to support the provision of strategic materials needed by the trans Sumatran toll road (JTTS) project. PT ACP as a subsidiary of PT Hakaaston as well as a grandson of PT Hutama Karya (Persero) sees this as an opportunity to accelerate exponential growth that needs to be carefully captured and utilized as well as possible by PT ACP in growing its business in the long term. Share ownership is one form of corporate action in making investments. Evaluation of the implementation of the share ownership needs to be done to determine the feasibility of the investment and provide alternatives in decision making. This study was conducted to determine the intrinsic value of PT ACP through Discounted Cash Flow (DCF) and Free Cash Flow to the Firm (FCFF). The result of this analysis indicate that the intrinsic value is Rp 1.16 Trillion, while the book value is Rp 125 Billion, which makes the intrinsic value 9.2x greater than the book value, and it is possible to maintain and also increases the share portion to become the majority. Therefore, PT Hakaaston is advised to increase share ownership of PT ACP.