STOCK VALUATION AND BANK PERFORMANCE OF PT BANK TABUNGAN NEGARA (PERSERO) TBK

• Main Author: Marchela, Jennyfer
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/67019
• Institution: Institut Teknologi Bandung

The economic crisis in Indonesia in 1998 and 2008 caused the government aware of the bank’s health and financial performance. OJK as the authorized party to assess bank issuing policy to analyze bank performance using RBBR. During the Corona virus pandemic in Indonesia, every industry is impacted because business processes stopped. BTN as one of bank stock traded in the market also facing the sharp decrease of stock price, more over before the pandemic spread in Indonesia, BTN already experiencing decrease in stock price. This research aims to analyze the healthiness ratio of BTN financial performance and valuation of BTN stock to determine whether BTN is still a good investment or not by asses whether the stock is undervalued or overvalued. The data used for the analysis is BTN historical financial data from 2017 until 2021. Analysis from the previous data show that BTN have a performance improvement for healthiness in 2021. BTN succeed to decreasing their risk in NPL until reaching very healthy category at 1,20% and in LDR with healthy category at 92,86%. BTN also succeed to increase their earning with quite healthy ROA at 0,81% and very healthy NIM at 3,99%. BTN also in very healthy CAR condition, but they increase CAR to 25,34%. This study using relative valuation and absolute valuation. In absolute valuation, dividend payment historical data calculated using Gordon Growth Model and Growth and Payout Model, both resulting undervalued stock. Relative valuation used in this study is PER with result overvalued and also PBV resulting undervalued stock. Also both PER and PBV and considered cheaper compared to other companies in similar industries. Based on the RBBR and stock valuation, BTN considered undervalued and still a good investment for investors because they have improved their financial performance and the stock is undervalued.