ANALYZING FINANCIAL PERFORMANCE, BANK HEALTH AND STOCK VALUATION OF DIGITAL BANKING (CASE STUDY: PT. ALLO BANK INDONESIA, TBK)

• Main Author: Muhammad, Hemadanda
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/82985
• Institution: Institut Teknologi Bandung

Stocks are one of the most popular investment instruments among Indonesian because capital market have good performance. One industry whose companies have good performance is the banking industry. Allo Bank, which is one of Indonesia's digital banks, is one of the banks with good performance. Allo Bank was able to become a digital bank that made the highest profit for three years among other digital banks, but Allo Bank's performance was not reflected in its stock performance, as seen from Allo Bank's shares which continued to decline for two consecutive years. In addition, the banking index showed improved performance. The objective of this study is to analyze the allo bank shares by finding intrinsic value using the dividend discount model and conduct a valuation by considering market conditions using the Price to earning ratio and Price to book value methods. This study will also analyze the financial performance and health of the bank using the risk-based banking rating method and make comparison with digital banking industy and KBMI 2 bank. In addition, this study will also conduct a macroenvironment analysis and industry profitability using PESTEL and Porter Five forces. Both analyzes are used to assist investor decision making because investors in making investment decisions are also influenced by financial performance and external business condition. External analysis shows positive support for the digital banking business in Indonesia and the digital banking industry in Indonesia is still profitable for allo bank to continue running its business. Allo bank has good financial performance and health as seen from the risk-based banking rating measurement. Allo bank's stock valuation still looks undervalue than other banks when viewed from its PER and PBV ratios but Allo bank is also considered overvalued by the market because allo bank's intrinsic value of IDR 320,97 is still below the market value at the closing price in 2023 of IDR 1,290. Investors can use the results of the dividend discounted model valuation considering that the dividend discounted model method uses the company's fundamental data and the PER and PBV methods still depend on the market which has the weakness of the potential for irrational investors in making investments that cause stock prices to be biased. Investors can make a sell decision regarding allo bank shares because allo bank shares are still considered overvalued by the market.