loading
Papers Papers/2020

Research.Publish.Connect.

Paper

Authors: Riko Hendrawan ;  Rijikan and Hiro Tugiman

Affiliation: Telkom University, Jalan Geger Kalong Hilir, Bandung, Indonesia, Indonesia

ISBN: 978-989-758-408-4

Keyword(s): Cement Companies, Discounted Cash Flow, Relative Valuation

Abstract: This research aimed to assess the fair value of stock price at Cement Companies listed in Indonesia Stock Exchange using Discounted Cash Flow (DCF) with Free Cash Flow to Firm (FCFF) approach to calculate the value of a company and Relative Valuation methods with Price Earning to Ratio and Price Book to Value approach to validate DCF result. The samples of this research are Indocement Tunggal Prakarsa (INTP), Holcim Indonesia (SMCB) and Semen Baturaja (SMBR) which are the big three cement company. The research data were derived from historical data 2013 – 2017 which considered as reference for projection years 2018 – 2022 involving three scenarios namely pessimistic, moderate and optimistic scenario and the value of the research compared within market price on January 2, 2018. Findings from this research showed that using DCF FCFF fair value on INTP has overvalued in all scenarios, for SMCB and SMBR have overvalued in the pessimistic scenario but undervalue in moderate and optimist sc enarios. Furthermore, in relative valuation method within PER and PBV, the research is within the industry range that means the result of a calculation is proper. The conclusion of this research is to recommend selling INTP shares, buying SMCB and SMBR shares. (More)

CC BY-NC-ND 4.0

Sign In Guest: Register as new SciTePress user now for free.

Sign In SciTePress user: please login.

PDF ImageMy Papers

You are not signed in, therefore limits apply to your IP address 3.80.6.131

In the current month:
Recent papers: 100 available of 100 total
2+ years older papers: 200 available of 200 total

Paper citation in several formats:
Hendrawan, R.; Rijikan. and Tugiman, H. (2020). Stock Valuations in Cement Companies: Evidence from Indonesia Stock Exchange. In Proceedings of the 2nd International Conference on Inclusive Business in the Changing World - ICIB, ISBN 978-989-758-408-4, pages 45-54. DOI: 10.5220/0008427400450054

@conference{icib20,
author={Riko Hendrawan. and Rijikan. and Hiro Tugiman.},
title={Stock Valuations in Cement Companies: Evidence from Indonesia Stock Exchange},
booktitle={Proceedings of the 2nd International Conference on Inclusive Business in the Changing World - ICIB,},
year={2020},
pages={45-54},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008427400450054},
isbn={978-989-758-408-4},
}

TY - CONF

JO - Proceedings of the 2nd International Conference on Inclusive Business in the Changing World - ICIB,
TI - Stock Valuations in Cement Companies: Evidence from Indonesia Stock Exchange
SN - 978-989-758-408-4
AU - Hendrawan, R.
AU - Rijikan.
AU - Tugiman, H.
PY - 2020
SP - 45
EP - 54
DO - 10.5220/0008427400450054

Login or register to post comments.

Comments on this Paper: Be the first to review this paper.