FINANCIAL PERFORMANCE AND STOCK VALUATION OF PT. METRODATA ELECTRONICS TBK (MTDL)

• Main Author: Mathew Iskak, Jonathan
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83976
• Institution: Institut Teknologi Bandung

The rapid growth in the Information and Communication Technology (ICT) industry in Indonesia highlights the significance of analyzing MTDL, one of the key player in this sector. The objective is to provide a comprehensive analysis of MTDL's financial health and to assess the fair value of its stock using relative valuation which used Price to Earning (P/E) and Market to Book (M/B) ratios and absolute valuation which used Discounted Cash Flow (DCF) method. MTDL has demonstrated robust and stable financial performance, maintained steady profitability and improved operating and net profit margins through efficient cost management. Earnings per share (EPS), Return on Assets (ROA), and Return on Equity (ROE) have shown consistent improvement. The company’s liquidity and solvency are strong, with favorable current and quick ratios, efficient inventory and asset management, low debt ratios, and high-interest coverage. The relative valuation using P/E and M/B ratios estimates MTDL's fair share value between IDR 424.8 and IDR 991.2, with base-case estimates of IDR 620.2 (P/E) and IDR 605.5 (M/B). The current stock price of IDR 560 suggests the stock is fairly to slightly undervalued. Absolute valuation using DCF estimates a fair value range of IDR 290.98 to IDR 698.20, with a base-case of IDR 424.91. The current price aligns within this range, indicating potential overvaluation under the base case but justified under the best-case scenario. The writer suggests that MTDL presents a promising investment opportunity due to its robust financial performance and position in the ICT market. However, caution is advised regarding potential overvaluation according to the Discounted Cash Flow method.