STOCK VALUATION OF PT. ADHI COMMUTER PROPERTI TBK (ADCP): HOW LRT COMMENCEMENT AFFECTS COMPANY VALUATION

• Main Author: Fathurrahman, Muhammad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79826
• Institution: Institut Teknologi Bandung

Amidst global economic uncertainty in 2023, Indonesia strives for continued economic growth through innovative solutions to urban expansion challenges. The government tackles limited urban land and traffic congestion with newly built LRT infrastructures and Transit-oriented Development (TOD) residences. Simultaneously, Bank Indonesia's efforts to stabilize the reverse repo rate play a crucial role in fostering stability and growth, particularly in increasing housing loan demand. These regulatory measures are poised to benefit the property industry by attracting more potential customers. PT. Adhi Commuter Properti tbk. (ADCP) positions itself to capitalize on the rising demand for urban properties. Despite the challenges, including a declining stock price, ADCP's strategic differentiation and regulatory relaxation present growth opportunities. Analyzing ADCP's intrinsic value using Discounted Cash Flow (DCF), Relative Valuation, and Net Asset Value (NAV) methods reveals a potential undervaluation. Considering the results, the author recommends buying or holding ADCP’s stock for long-term investment. The stock appears undervalued compared to its intrinsic value and exhibits favorable P/E and PBV ratios compared to industry peers.