FINANCIAL PERFORMANCE ANALYSIS AND STOCK VALUATION OF PT KIMIA FARMA TBK

• Main Author: Wiranti
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83949
• Institution: Institut Teknologi Bandung

A prominent pharmaceutical company in Indonesia, Kimia Farma, faced a significant revenue decline compared to its industry counterparts in the aftermath of the pandemic. Given the pharmaceutical sector's pivotal role in driving innovation, economic growth, and public health, it becomes imperative to explore the company's financial health with the thigh government regulatory and market dynamics influencing industry stability. The objective of this study to determine the fair value of Kimia Farma's stock and to conduct a comprehensive analysis of its financial performance. The research delves into competitive rivalry within the pharmaceutical industry and examines both internal and external factors that influences impacting Kimia Farma. This research uses a mixed-methods approach combining qualitative and quantitative analyses. Utilizing secondary data sourced from annual audited financial reports and publicly available information, the study leverages five years of historical financial statements from 2018 to 2022. Valuation of Kimia Farma's stock is conducted using both DCF and relative valuation methods. The findings indicate that the calculated value per share of KAEF is approximately Rp. 569, suggesting an overvaluation relative to prevailing market prices at the time of the study. Key independent variables influencing the valuation include Cost of Goods Sold (COGS), Selling, General, and Administrative Expenses (SGA), and Weighted Average Cost of Capital (WACC). This study provides actionable insights and strategic recommendations aimed at enhancing Kimia Farma's operational and financial strategies. These insights are designed to assist stakeholders, particularly investors, in making well-informed decisions based on rigorous data analysis and comprehensive research findings. By addressing the identified challenges and leveraging opportunities, Kimia Farma can potentially strengthen its market position and improve overall financial performance in the dynamic pharmaceutical landscape of Indonesia.