STOCK VALUATION OF PT BANK SYARIAH INDONESIA TBK TO BUILD MARKET PERCEPTION AND INCREASE MARKET CAPITALIZATION

• Main Author: Islamey Ningrum, Naeyza
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83991
• Institution: Institut Teknologi Bandung

PT. Bank Syariah Indonesia Tbk aspires to be one of the top 10 global sharia banks in 2025 in terms of market capitalization. As of December 2023, PT. Bank Syariah Indonesia Tbk ranks 13 with 5,18 billion USD in market capitalization. This research aims to examine PT. Bank Syariah Indonesia Tbk stock by using Discounted Cash Flow (DCF) through Free Cash Flow to Equity (FCFE) and Dividend Discount Model (DDM), and Relative Valuation method through the Price to Earning (P/E), Price to Book Value (PBV), and Enterprise Value to Revenue (EV Revenue) to determine whether the stock is undervalued or overvalued in order to build market perception and increase market capitalization. According to FCFE valuation in Scenario 1 and Scenario 2 result, the intrinsic value per share of PT. Bank Syariah Indonesia Tbk is Rp 37.497 per share and Rp 23.768 per share, while its share price as of 31 December 2023, is Rp 1.740, indicating that the stock of PT. Bank Syariah Indonesia Tbk is undervalued by the market. Based on DDM the intrinsic value per share is Rp 1.831, indicating the stock is undervalued. This means that the market has not completely recognized the PT. Bank Syariah Indonesia Tbk 's ability to generate future cash flows and true value based on its future dividend payouts. PT. Bank Syariah Indonesia Tbk’s undervalued stock offers the possibility of returns for the potential investor as the share price rises over time to reflect the intrinsic value per share. The company’s P/E is 14,07, while median industry is 9,20 with company’s weighted average target price is Rp 490, while media industry target price is Rp 846. This means that the stock price is overvalued. The company’s P/BV is 2.07, while the median industry is 0,65 with company’s weighted average target price is Rp 137, while median industry is Rp 306. This means that the stock is overvalued. The company’s EV/Revenue is 4,0 while the median industry is 2,89 with company’’s weighted average target price is Rp 1.214, while median industry is Rp 1.117. This means that the stock is overvalued. Relative valuation resulting overvalued indicates that the market anticipates higher company’s future growth. Based on the result, this research recommends strategies that may applied by management to increase market perception and market capitalization and recommend investor to buy the stock of PT. Bank Syariah Indonesia Tbk.