FINANCIAL VALUATION ANALYSIS IN HEALTHY CHILDREN’S FOOD CASE STUDY OF LIL'BITES

• Main Author: Rahman, Luthfi
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/84623
• Institution: Institut Teknologi Bandung

Malnutrition is currently a pressing issue for the government, especially in Indonesia, due to its high prevalence. One of the malnutrition problems that needs attention is wasting, which has increased compared to the previous year. Wasting is a nutritional problem that results in weight and height deficiencies that do not meet the standards for children of the same age. This nutritional issue is closely related to food as a source of fulfilling children's nutritional needs. Children not only need main meals but also snacks to supplement their nutritional intake. Parents are increasingly aware of the quality of food given to their children. However, the current market conditions show that available children's snacks are often unhealthy and fail to meet their nutritional needs. This is where Lil’Bites steps in, focusing on providing healthy and nutritious snacks for children. Lil'Bites offers products made with healthy ingredients, ensuring they meet children's nutritional requirements without exceeding them. Despite the significant market potential, Lil’Bites' financial condition from October 2023 to March 2024 has been fluctuating and tends to decline due to the lack of clear strategies and targets. Therefore, Lil'Bites' valuation was calculated using the discounted cash flow (DCF) method to determine its growth potential. Relevant data from the company were used as primary data, and secondary data were obtained from benchmarking similar companies. The results of this study show that Lil'Bites' valuation after 5 years of operation is Rp3,533,423,598, indicating strong potential for future value creation. Consequently, Lil'Bites can set appropriate targets and strategies aligned with its valuation.