FINANCIAL PERFORMANCE, STOCK VALUATION USING DISCOUNTED CASH FLOW METHOD WITH FREE CASH FLOW TO FIRM, AND RELATIVE VALUATION APPROACHES AT PT. GARUDA INDONESIA TBK

• Main Author: Muhammad Nur Amrulloh, Venando
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/71975
• Institution: Institut Teknologi Bandung

Indonesia experienced a very sharp economic decrease in 2020. A significant decrease in Gross Domestic Product (GDP) that year was 59.2% from 2019. One of the largest contributors to GDP is the service industry sector, one of these service industries is the aviation industry. In 2020, aviation industry passengers decreased by 51.5% from 2019. PT. Garuda Indonesia's listing on the Indonesia Stock Exchange (IDX) was terminated in 2021 due to poor financial performance and accumulated corporate debt. In 2022, PT. Garuda Indonesia propose Suspension of Debt Payment Obligations (PKPU). The Government of Indonesia provides State Investment (PMN) to PT. Garuda Indonesia to restructure. To be able to develop in the aviation industry sector, every company must improve its financial performance. This research is included in the type of descriptive research using quantitative and qualitative approaches, with a comparison of 3 sample airlines which are state-owned companies for 2017-Q2 2022. Several assumptions were made by considering the external and internal analysis. External analysis consists of analysis of macroeconomic conditions, PESTEL, and Porter's Five Forces. The internal analysis uses an assessment of the health level of the Ministry of SOE’s which consists of liquidity ratios, profitability ratios, solvency ratios and activity ratios. Financial ratio analysis uses the combine analysis method which is a combination of cross-sectional analysis and time series analysis. The author uses an indicator for assessing the health of the company, the assessment is in the form of a company's financial performance ratio based on the regulation of the Ministry of SOE’s No. KEP-100/MBU/2002. The regulation provides indicators through financial ratios, such as Return on Equity (ROE), Return on Investment (ROI), Cash Ratio, Current Ratio, Collection Period (CP), Total Asset Turnover (TATO), Inventory Turnover (ITO), dan Total Equity to Total Asset (TETA). This study also looks at the intrinsic value of PT. Garuda Indonesia using Discounted Cash Flow with Relative Valuation comparison. The results of the company's health assessment at PT. Garuda Indonesia that is "Less Healthy" with a "B" level in the 2017-2019 period, then changed to "Unhealthy" with a "CC" level in the 2020-Q2 2022 period. Intrinsic value at PT. Garuda Indonesia is IDR 79 with sensitivity analysis in the range -IDR 66 to IDR 327. The results of the relative valuation in the three PER scenarios are "undervalued", while the PBV value in the moderateoptimistic scenario is "overvalued" and in the pessimistic scenario is "undervalued".