VALUATION OF PT KENCANA ENERGI LESTARI TBK'S STOCK: THE IMPACT OF REVENUE GROWTH FROM FUTURE PROJECT EXPANSION USING DISCOUNTED CASH FLOW ANALYSIS

This thesis examines the valuation of PT Kencana Energi Lestari Tbk's stock, a renewable energy company in Indonesia, with an emphasis on the projected revenue growth from a planned 200MW project expansion set to be completed by 2025. A significant revenue increase is forecasted as the co...

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Bibliographic Details
Main Author: Wariswantika, Indon
Format: Theses
Language:Indonesia
Online Access:https://digilib.itb.ac.id/gdl/view/85904
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Institution: Institut Teknologi Bandung
Language: Indonesia
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Summary:This thesis examines the valuation of PT Kencana Energi Lestari Tbk's stock, a renewable energy company in Indonesia, with an emphasis on the projected revenue growth from a planned 200MW project expansion set to be completed by 2025. A significant revenue increase is forecasted as the company's production capacity is expected to expand from 64MW to 264MW, utilizing a Discounted Cash Flow (DCF) analysis. The company is recognized for its dedication to generating renewable energy through hydropower, thereby playing a crucial role in the promotion of sustainable energy solutions. The company's capital structure is further analysed, with particular attention to the Debt-to-Equity Ratio (DER) composition. The financing strategies employed, specifically the balance between equity and debt, are explored to support the expansion project. A comprehensive evaluation is provided of these factors and their influence on the intrinsic value of the company's stock. The research offers valuable insights for investors and stakeholders, aiming to enhance understanding of the potential financial outcomes and risks associated with the company's expansion plans, thereby facilitating more informed investment and strategic decisions.