ANALYSIS OF STOCK VALUATION AND BUSINESS PERFORMANCE OF A DIGITAL MEDIA COMPANY IN INDONESIA BEFORE AND AFTER THE COVID-19 PANDEMIC (CASE STUDY: GLOBAL MEDIACOM)

• Main Author: Imaduddin, Aufarizqi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/74311
• Institution: Institut Teknologi Bandung

The rise of digital streaming and investing in Indonesia is an unignorable phenomenon that is exacerbated by the COVID-19 pandemic. One company that is caught up in this unprecedented scenario is PT Global Mediacom TBK (BMTR). Being part of the most integrated multimedia conglomerate and owning the largest content library in Southeast Asia made the author curious to see how the stock valuation and business performance of the company have been affected by the pandemic. The everchanging digital streaming landscape and its massive growth over the past few years create both an opportunity and threat for the company’s growth. To analyze this, the study utilized secondary data from PT Global Mediacom Tbk annual report, idx.co.id as well as other various secondary sources. The data is then compounded with previous existing literature in order to create a more holistic view of the results. The data is processed using absolute valuation method of Discounted Cash Flow valuation and relative valuation method which utilized Price-to-Earnings Ratio, Price-to-Book Value and EV/EBITDA. Using the absolute valuation method, the research discovered that the company’s stock is currently overvalued with an intrinsic value of Rp 169 in comparison to the actual price of Rp 278. The research found that the primary reason for this is the company’s high beta stock of 1.8 which could signal a higher risk but high return. Using the relative valuation method, it was discovered that using all the metrics that BMTR stock is undervalued. However, the financial analysis as well as the relative valuation has found that the company is the most stable. This demonstrates the excellent business performance of the company. The conclusion the author created was that the stock is risky but it has a safety net of being a stable company in a rapidly growing industry.