INTRINSIC AND RELATIVE VALUATION OF PT ANEKA TAMBANG, TBK: NAVIGATING THROUGH COMMODITY MARKET VOLATILITY AND INDUSTRY TRANSFORMATION
PT. Aneka Tambang, Tbk (ANTAM) is a state-owned mining company in Indonesia, known for its diverse product range including gold, nickel, alumina, silver, and other precious metals. Gold sales constitute 69% of ANTAM’s net sales, with nickel contributing 27%. As the industry shifts towards EVs, AN...
Saved in:
| Main Author: | |
|---|---|
| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/85906 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | PT. Aneka Tambang, Tbk (ANTAM) is a state-owned mining company in Indonesia, known
for its diverse product range including gold, nickel, alumina, silver, and other precious metals.
Gold sales constitute 69% of ANTAM’s net sales, with nickel contributing 27%. As the
industry shifts towards EVs, ANTAM plans to increase nickel production but faces the
challenge of low government-controlled nickel prices. This study evaluates ANTAM’s value
over the next 5 years, focusing on these challenges and the impact of concentrating on one or
two commodities. Using a quantitative approach, the research involves analyzing financial
reports, press releases, and public documents, complemented by semi-structured interviews.
It includes historical data collection, PESTEL analysis, intrinsic valuation via Discounted
Cash Flow (DCF) with Free Cash Flow to Firm (FCFF), relative valuation, and sensitivity
analysis. Findings show that ANTAM’s intrinsic value is Rp. 1,704 per share, higher than the
current market price of Rp. 1,360, indicating potential undervaluation. Sensitivity analysis
highlights that revenue and Cost of Goods Sold (COGS) are key factors. The intrinsic value
of ANTAM focusing solely on gold is Rp. 1,236, nickel is Rp. 884, and a combination of gold
and nickel is Rp. 1,644. Recommendations include considering ANTAM’s stock for longterm growth, monitoring revenue and COGS, and leveraging market conditions for investment
opportunities. ANTAM’s management should focus on optimizing production, managing
costs, and enhancing financial transparency. Stakeholders should stay updated on performance
and market trends, adjusting strategies as needed. |
|---|