BUSINESS VALUATION USING DISCOUNTED CASH FLOW METHOD IN RESTAURANT INDUSTRY (CASE STUDY: COFFEE SHOP XYZ IN BANDUNG)

• Main Author: Balqis Maharani Putri, Nisrina
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/71999
• Institution: Institut Teknologi Bandung

The level of coffee consumption continues to increase from year to year due to the influence of third wave coffee, this also affects the sales of Coffee Shop XYZ which continue to increase. Departing from this success, management wants to open two new branches, namely in Purwakarta and in Subang through raising funds on the equity crowdfunding platform. That's why Coffee Shop XYZ needs steps for company valuation to find out the business value and share price that Coffee Shop XYZ will provide. Coffee Shop XYZ's company valuation assessment uses absolute and non-absolute valuation methods, where the absolute valuation method uses discounted cash flow with terminal value, while the non-absolute valuation method uses a relative model which compares Coffee Shop XYZ's financial ratios with similar companies in the same industry. , namely the restaurant. Based on the results of the study using the absolute valuation method, it was found that Coffee Shop XYZ had an enterprise value of Rp 19.930.457.260, with a share price of Rp 49.706,38 and 390.000 outstanding shares. Meanwhile, based on the non-absolute method, the EV/EBIT, P/E and P/B ratios indicate that Coffee Shop XYZ is undervalued, meaning that the business will generate greater profits, and the business is considered not too high-risk for investment. It also has a fair share price and the ratios show its ability to distribute dividends to investors. In conclusion, based on Coffee Shop XYZ's valuation, it is known as a declining overvalued company. Even so, Coffee Shop XYZ will still provide positive residual income.