FUNDAMENTAL ANALYSIS AND STOCK VALUATION OF PT ELNUSA, TBK
The stock market has created massive amount of wealth and opportunity over the years. If the investment strategy can be managed following detailed analysis, investing in stock market has potential to yield higher returns than some other investment options in the long run. This thesis will focus to a...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/77182 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The stock market has created massive amount of wealth and opportunity over the years. If the investment strategy can be managed following detailed analysis, investing in stock market has potential to yield higher returns than some other investment options in the long run. This thesis will focus to analyze PT. Elnusa, Tbk (IDX: ELSA) as one of the listed companies on oil and gas sector.
Unlike short-term traders who are influenced by market sentiment and price fluctuations, long-term investors seek to build robust portfolios by identifying undervalued stocks with growth potential. Thoroughly fundamental analysis with top - bottom process to be done to assess macro-economic condition, company's financial health, growth prospects and intrinsic value to provide valuable insight for the stock investors who want to evaluate the investment prospect on ELSA stock.
Elnusa’s income statement shows continuously high revenue increase during the last 5 years with the average revenue growth of 22% per year. Balance Sheet shows continuously increase of total Assets with growth rate of 14% per year, which indicating that Elnusa consistently expanding to get bigger. However, Elnusa has a low profitability index. All profitability parameter which are gross profit margin (GPM), operating profit margin (OPM) and net profit margin (NPM) have a tendency of declining over time.
Based on the stock valuation performed by discounted cash flow (DCF) method, base case of ELSA fair value is 484. Further fair value following some scenario analysis also provided in this thesis. Compare to 18 July 2023 price of 376, ELSA stocks are considered undervalued with potential upside of 28.7%. From fundamental analysis point of view for a long-term investment, in an effort to minimize the risk, considering Q2-2023 report will be released in the near future and also aligned with the available analyst recommendation, therefore, the author recommend to "HOLD" ELSA stocks. Another detailed analysis can be done following information acquired from Q2-2023 financial report.
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