Can We Validate the Value? Valuing Automotive and Component Sub-Sector Companies Listed on the Indonesia STOCK Exchange during the Covid-19 Pandemic Crisis

Soelistyo, Alex; Hendrawan, Riko

doi:10.11594/ijmaber.03.02.09

Cited by 2 publications

(2 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Order By: Relevance

“…After determining if the company is cheap, fairly priced, or overvalued, the comparison's f indings will lead to recommendations for investors on whether to purchase, hold, or sell the stock. (Soelistyo & Hendrawan, 2022).…”

Section: Technical Data Analysismentioning

confidence: 99%

Comprehensive Analysis of Indonesian Retail Stocks Valuation in 2023

Sunandar,

Dwi Fitrizal Salim

2023

IJFBS

View full text Add to dashboard Cite

Modern retail businesses in Indonesia are growing rapidly thanks to open market opportunities, manufacturing businesses that support product supply, and government support for economic growth through retail development. The purpose of this study is to determine the intrinsic value of shares of companies engaged in the food and staples retail sub-sector which in this case is represented by PT. Sumber Alfaria Trijaya, Tbk. (AMRT), PT. Diamond Food Indonesia, Tbk. (DMND), PT. Midi Utama Indonesia, Tbk. (MIDI), PT. Enseval Putera Megatrading, Tbk. (EPMT), and PT. Millenium Pharmacon Internatioanl, Tbk. (SDPC) listed on the Indonesia Stock Exchange (IDX). This research uses historical data for 2018-2022 which will be used as the basis for projections for 2023-2027. The results showed that by using the Discounted Cash Flow (DCF) method, specifically the Free Cash Flow to Firm (FCFF) approach, under an optimistic scenario, the intrinsic values of AMRT, SDPC, and DMND were undervalued. EPMT and MIDI stocks are overvalued. In the moderate scenario, the intrinsic values of AMRT, MIDI, EPMT, and DMND are overvalued, while SDPC is undervalued. Calculations on a pessimistic scenario, all companies studied are overvalued. In this study, the valuation of stocks was also conducted using the Relative Valuation (RV) method with the Price to Earnings Ratio (PER) and Price to Book Value (PBV) approaches. In an optimistic scenario, the stocks of AMRT, MIDI, and SDPC are considered expensive, while EPMT and DMND are seen cheap. In a moderat scenario, the stocks AMRT, EPMT, and SDPC are considered undervalued, while MIDI and DMND are seen expensive. In a pessimistic scenario, it is observed that AMRT, EPMT, and SDPC are undervalued, whereas MIDI and DMND are considered overvalued. This research aims to provide an objective assessment of the company, which investors can use to consider investments and by companies to enhance corporate value.

show abstract

Section: Technical Data Analysismentioning

confidence: 99%

Comprehensive Analysis of Indonesian Retail Stocks Valuation in 2023

Sunandar,

Dwi Fitrizal Salim

2023

IJFBS

View full text Add to dashboard Cite

show abstract

“…Historical data from 2016 to 2020 and the DCF approach determined that MEDC and ELSA share prices were undervalued in all scenarios, while ESSA was overvalued in all scenarios. MEDC, ESSA, and ELSA were all undervalued by the RV approach in all cases Soelistyo and Hendrawan (2022). calculated the average stock price of automotive subsector companies using historical data from 2016 to 2020.…”

mentioning

confidence: 99%

Fair Value Assessment for Industrial Goods Stocks in Indonesia Post-Pandemic

Rachman,

Salim

2023

IJFBS

View full text Add to dashboard Cite

Many industrial sectors were severely affected during the pandemic, which lasted from 2020 to 2021. Such indicators can be observed in various companies implementing efficiency measures ranging from cost reduction unrelated to revenue growth to layoff policies. Despite being under pressure due to the pandemic, many industrial subsectors experienced significant growth in the second quarter of 2021, according to statistics from the Ministry of Industry. This study aims to determine the fair value of shares in Industrial Goods companies listed on the Indonesia Stock Exchange. This approach uses a discounted cash flow (DCF) methodology with free cash flow to the company and relative valuation through price-to-earnings and price-to-book ratios. From 2017 to 2021, historical financial data was utilized to forecast future income and expenditure behavior in three scenarios: optimistic, moderate, and pessimistic. The results showed that the DCF-FCFF technique underestimated IMPC, ARNA, and UNTR. MARK is overvalued in pessimistic, moderate, and optimistic scenarios, while MARK is undervalued in optimistic scenarios. HEXA is overvalued in the pessimistic scenario but undervalued in the moderate and optimistic scenario. ARNA and UNTR were overvalued in all relative assessment scenarios using the PER approach, but MARK and HEXA were undervalued. IMPC is undervalued in a gloomy scenario and overpriced in a moderate and optimistic scenario. In all cases, the PBV method overestimates IMPC, ARNA, MARK, HEXA, and UNTR. The study implies that investors should conduct thorough due diligence before making investment decisions, considering company-specific factors and broader market conditions. Companies in the Industrial Goods sector must be ready to adapt to changing market dynamics and prioritize long-term value creation to attract and maintain investor confidence.

show abstract

Can We Validate the Value? Valuing Automotive and Component Sub-Sector Companies Listed on the Indonesia STOCK Exchange during the Covid-19 Pandemic Crisis

Cited by 2 publications

References 1 publication

Comprehensive Analysis of Indonesian Retail Stocks Valuation in 2023

Comprehensive Analysis of Indonesian Retail Stocks Valuation in 2023

Fair Value Assessment for Industrial Goods Stocks in Indonesia Post-Pandemic

Contact Info

Product

Resources

About