BUSINESS PERFORMANCE AND COMPANY FAIR VALUATION OF PT. BLUE BIRD, TBK

• Main Author: Sirait, Marolop
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/86770
• Institution: Institut Teknologi Bandung

The transportation industry has experienced substantial changes in recent years. Traditional models have been reshaped by the emergence of digital platforms, including ride-hailing services and mobility-as-a-service (MaaS) solutions, which emphasize convenience, affordability, and seamless integration. PT. Blue Bird, Tbk showcased financial resilience and adaptability from 2019 to 2023, recovering from the pandemic to surpass pre-pandemic levels. Revenue rebounded to Rp 4,422 billion in 2023, a 23% increase from 2022, profit after tax rising by 27% to Rp 463 billion. These achievements highlight Blue Bird's ability to align operational performance with market demands, ensuring sustained leadership in Indonesia's transportation sector. Stock price has been under pressure due to intense competition, operational inefficiencies, and the company's slow adaptation to digital trends. This company faces a highly competitive market. Financial ratios like Gross Profits Margin, Return on Equity , and Return on Assets also indicated recovery, with positive trends in 2022 and 2023. Liquidity ratio, including the current and cash ratio, fluctuated over the years, reflecting the company's shifting short-term liquidity position. Debt to Equity ratio remained relatively stable, showing conservative use of debt financing. Market ratios like Price to Earning and Price to Book Values exhibited volatility, influenced by investor sentiment and market conditions. The Discounted Cash Flow valuation indicated a positive outlook for the company's future. The company should focus on reducing costs by modernizing its fleet with fuel-efficient or electric vehicles and enhancing its digital transformation through a more user-friendly app and dynamic pricing. Strategic partnerships with digital platforms and mobility services can expand revenue streams, while market expansion into Southeast Asia could leverage its strong financial position. Investing in sustainability, offering loyalty programs, and improving customer retention will also strengthen its position. For investors, PT Blue Bird presents opportunities, but monitoring its progress in digital integration, cost reduction, and expansion is key to assessing long-term growth potential. However, based on the financial analysis conducted, the intrinsic value of the stocks is estimated to range between IDR 2,325 and IDR 3,076 per share, higher than its current market price of IDR 1,895 per share. This indicates that the stock may be undervalued, presenting a potential investment opportunity for long-term investors.