STOCK VALUATION AND BUSINESS PERFORMANCE OF PROPERTY INDUSTRY POST COVID-19 ERA (PT BUMI SERPONG DAMAI TBK)
Post Covid-19 era, the financial performance of PT Bumi Serpong Damai Tbk showed a good condition, the evidence is the increase in company profitability and decline in the debt. The fundamentals contrast with the stock price as the price declined even in the recovery phase. This condition encourages...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/77209 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Post Covid-19 era, the financial performance of PT Bumi Serpong Damai Tbk showed a good condition, the evidence is the increase in company profitability and decline in the debt. The fundamentals contrast with the stock price as the price declined even in the recovery phase. This condition encourages the writer to do the research on PT Bumi Serpong Damai Tbk stock valuation and whether the share is classified as overvalued or undervalued.
The research will utilize secondary such as financial reports, annual reports, public expose from idx.co.id, tradingview, and other literature sources. The methodology to process the data is Multiple Valuation, Discounted Cash Flow valuation method to find the actual intrinsic value and value-added intrinsic value, to find the fair value using Net Asset Value valuation method. The added value is a proposal to developing housing projects for Generation Z with goal to increase the company share price.
From this research, the actual intrinsic value is IDR 1,227 per share with 4.87% margin of safety and the added-value valuation method is IDR 1,708 per share with 46% margin of safety. The result of Net Asset Value method is fair value of IDR 2,554 per share and 118.29% margin of safety. The price range for PT Bumi Serpong Damai Tbk stock is IDR 1,227 – 2,554 per share.
The current stock price of the stock is not suitable for value investors since the margin of safety is below 30.0%. PT Bumi Serpong Damai Tbk stock is suitable for fund managers managing mix mutual funds with return 5.0% to 10.0%.
The limitation of this research is that the stock valuation method relies heavily on assumptions therefore valuation method is subjective since different assumptions lead to different result.
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