ANALYSIS OF THE SHARE PRICE OF PT INDOSAT TBK. USING ABSOLUTE VALUATION AND RELATIVE VALUATION

• Main Author: Nuga Restu Fildanto, Muhammad
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64727
• Institution: Institut Teknologi Bandung

Established in 1967, PT Indosat Tbk (Indosat Ooredoo) is a leading telecommunication as well as informatics and convergence technology service provider in Indonesia. A member of Ooredoo Group, a global telecommunications provider. Indosat Ooredoo provides cellular, fixed data and wireless broadband services as well as fixed telecommunication or fixed voice offerings including IDD, fixed wireless and fixed phone services, and digital services. Also, Indosat Tbk. provides fixed data or Multimedia, Internet & Data Communication services such as IPVPN, leased line, internet services and IT services to corporate segments. Indosat Ooredoo’s shares listed on the Indonesia Stock Exchange is known as (ISAT). The research aims to analyze the intrinsic value, whether it is proportional to the market value of the shares of PT Indosat Tbk (ISAT). Estimating the fair price of shares is carried out by the method of Discounted Cash Flow (DCF) Free Flow to Firm (FCFF). After that, Relative Valuation is also used with the P/E Ratio method and EV/EBITDA method. Based on the FCFF method, it is known that the value of ISAT shares is overvalued. Based on the Relative Valuation approach with the comparison of PT Telekomunikasi Indonesia Persero (TLKM), PT Smartfren Telecom Tbk. (FREN) moreover, PT Xl Axiata Tbk. (EXCL), the value of ISAT shares is also overvalued. After constructing Final Valuation, it can be seen that the intrinsic value are IDR 1,750 while the market value is IDR 2,270. From this analysis, the investor should sell the stock of PT. Indosat Tbk. Moreover, for the company, it needs to seek for the next strategy to retain its position in the market