ANALYSING THE VALUE OF PT. XL AXIATA TBK IN 2022 USING DISCOUNTED CASH FLOW AND RELATIVE VALUATION

• Main Author: Al Umri, Najia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79831
• Institution: Institut Teknologi Bandung

In Indonesia's fast-paced phone and internet world, XL Axiata is a big name. XL Axiata offer mobile and home internet services to millions, especially with Indonesia growing so quickly. XL Axiata have big competition from Telkomsel, Indosat, Smartfren, and even new phone companies, but XL Axiata keeps doing well. XL Axiata do this by giving good deals, making their network bigger, and using the newest technology. During a increasing Indonesian telecommunications landscape filled with opportunities, PT. XL Axiata Tbk confronts the pivotal challenge of adaptation and innovation to retain its market leadership. Its past successes have been rooted in insightful business strategies, robust infrastructural investments, and a intelligent ability to navigate competitive terrain. However, the year 2022 brought forth a unique challenges and opportunities, developed by regulatory reforms, technological advancement, and shifting customer expectations. Within this dynamic landscape, accurately measuring the intrinsic value of PT. XL Axiata Tbk takes on critical importance for informed strategic decisions and rational investment strategies. This research aims to determine the value of PT. XL Axiata Tbk by using the Discounted Cash Flow (DCF) method and Relative Valuation. Based on DCF, the author calculation EXCL's stock is overvalued. Even though each share's intrinsic value is IDR 642, the market price is higher at IDR 2,093.67, which is 326% more. This big difference, seen in a Price As A Percentage Of Intrinsic Value ratio over 100%, suggests that the market might be more excited about the company than what the fundamentals show. Based on the EV/EBITDA metric, EXCL is more expensive than its competitors. Investors think the company is worth more (4.54x EBITDA) compared to the average in the industry (2.92x EBITDA).