STOCK VALUATION PT. SEMEN INDONESIA TBK. IN 2022 USING DCF AND MARKET MULTIPLE / RATIO VALUATION

• Main Author: Iskandar
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/75650
• Institution: Institut Teknologi Bandung

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. th 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.