RELATIVE STOCK VALUATION OF PT BUKALAPAK.COM TBK AS INDONESIA’S FIRST PUBLIC E-COMMERCE PLATFORM

• Main Author: Marsya E Wijaya, Irfandi
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/67225
• Institution: Institut Teknologi Bandung

Entrepreneurs create start-up companies or projects to seek, develop, and test scalable business models. Startups are typically associated with technology and rapid growth. Many people are familiar with the concept of "burning money" to accelerate the company's growth process so that startups can capture the market massively, with Indonesia ranking fifth in the world compared to 182 other countries, with a total of 2270 startups in Indonesia and growing quickly, Along with the population under 30 years old, which already accounts for more than 51 percent of the population, Indonesia is well-positioned to become Southeast Asia's next digital hub. The ongoing COVID-19 pandemic has accelerated Indonesia's digital adoption. It has encouraged more people to try digital services for the first time, increasing digital use in the country. During the pandemic, approximately one-third of Indonesia's first-time e-commerce users, the majority of whom are from non-metro areas, and while COVID-19 has harmed many sectors, particularly tourism-related (e.g., online travel and/or online transportation), it is really growth in eCommerce. Bukalapak is the first Indonesian e-commerce unicorn to be listed on the Jakarta Stock Exchange, with a market capitalization of US $6.5 billion. On August 6, 2021, the company went public in IDX. Bukalapak currently employs over 1,800 people across 37 business divisions. Bukalapak's mission is simple: to use technology to assist both offline and online Micro, Small, and Medium Enterprises (MSMEs). As we all know, many tech companies are still losing money or are not yet profitable. For example, Bukalapak's EBITDA is still a loss of 694 billion in Q2 2021, despite the large amount of business that Bukalapak has and the huge losses that Bukalapak continues to suffer. The term gross merchandise value (GMV) is commonly used in the e-commerce industry, but Bukalapak prefers another term, total processing value (TPV). Given this, researchers conducted research on the valuation of the company Bukalapak, using a relative valuation method that compares several main metrics that are commonly used in the technology industry, in this study. Investors should be able to use a fair valuation to determine how much the company is worth, and based on the data, we see that the price of Bukalapak's shares has continued to decline since the company's shares went public because, in this study, Bukalapak was traded at an overvalued price on initial public offering, so your results show that Bukalapak should be able to compete with the current business model in order to quickly become profitable.