VALUATION OF PT BARITO PACIFIC TBK: ANALYZING THE IMPACT OF CAPITAL STRUCTURE AND PROJECTED REVENUE GROWTH USING DISCOUNTED CASH FLOW (DCF) ANALYSIS

• Main Author: Iqbaal Rahman, Muhammad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/86546
• Institution: Institut Teknologi Bandung

In the current condition PT Barito Pacific shows high volatility of pricing but strong support in Rp 900 per share from the technical analysis. Now, it can be seen that substantial financial changes in the last ten years, the company debt has been increasing and also growing from $6.745 billion in 2013 to $62.186 billion in 2022. The debt mostly are being used as strategic measures undertaken to extend the company's investment portfolio and enhance its competitive position. With the current condition this research is to better comprehend the financial dynamics that influence the performance of PT Barito Pacific Tbk. Specifically, it examines how the company's capital structure and how good the fundamental of the company. With the PT Barito Pacific Tbk's growing dependence on debt financing has improved liquidity and supplied funds for development. But, it also brought about financial concerns, notably in terms of debt repayment and overall financial stability of the company. The study employs a rigorous mathematical analysis, financial ratio analysis, and the Free Cash Flow to Firm (FCFF) approach to predict future revenue growth and profitability. The findings indicate that PT Barito Pacific Tbk has utilized debt to stimulate expansion, but this approach has also heightened its vulnerability to financial risk, requiring strategic management to maintain a balance between development aspirations and financial caution. The analysis highlights the importance for PT Barito Pacific Tbk to manage its capital structure in order to increase shareholder value while also preserving operational efficiency. The report offers strategic suggestions for boosting the company's financial resilience, such as optimizing debt levels, improving cash flow management, and prioritizing sustainable growth plans that match with its long-term financial goals.