STOCK VALUATION PT. SEMEN INDONESIA TBK. IN 2022 USING DCF AND MARKET MULTIPLE / RATIO VALUATION
PT. Semen Indonesia's as one of the market leader in Indonesia cement business, has experienced vary challenges condition to improve their operation efficiency in order to increase company operating revenue. Tight market, low demand growth and over supply combine with high energy prices, spe...
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| Format: | Theses |
| Language: | Indonesia |
| Subjects: | |
| Online Access: | https://digilib.itb.ac.id/gdl/view/75650 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | PT. Semen Indonesia's as one of the market leader in Indonesia cement business,
has experienced vary challenges condition to improve their operation efficiency in
order to increase company operating revenue. Tight market, low demand growth
and over supply combine with high energy prices, specially coal, lead to highly
operating cost result in reducing company revenue. The total revenue stagnant
while company operating income show decline since 2019 until December 2022.
Share price of emitted SMGR drops up to 55% in last 3 years. In order to
improve the efficiency, PT. Semen Indonesia Tbk, on December 27
, 2022, has
acquisition 75% share of PT. Semen Baturaja as part of consolidation process.
The synergy was expected positive for company performance in future. This
consolidation is needed to optimize the company's revenue and cost efficiency
along the supply chain due to excess supply in the market.
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This thesis aims to estimate the valuation of PT. Semen Indonesia Tbk. (SMGR)
based on full year financial statement in 2022. The valuation method used in this
study is discounted cash flow method and market multiple. Various assumptions
will be used in this study based on current market conditions and future forecasts.
The final result of the calculation is an intrinsic value of SMGR which can be
used by investors and shareholders in making decisions to buy, hold or sell
SMGR.
Based on the analysis that has been done in this research, it shows that the
intrinsic value of SMGR is IDR 8,796 with range IDR 6,663 to IDR 9,935 based
on market multiple method, which mean the current IDR 5,950 market price is
undervalued. It is recommended for investor and stockholder to BUY and to
invest more on SMGR with potential upside up to 48%. After considering the
fundamental performance, investor may use Technical Analysis to determine the
best time to enter the market. |
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