Authors:
Riko Hendrawan
and
Ernis Himawan
Affiliation:
Telkom University, Jalan GegerkalongHilir, Bandung, Indonesia, Indonesia
Keyword(s):
Agriculture Plantation companies; FCFF; Relative valuation; Bursa Efek Indonesia.
Abstract:
As we know Indonesia is producer the largest CPO and the biggest Muslims in the world. Based on these two points, the researcher tried to analyze agricultural plantation companies shares listed on the Indonesia Stock Exchange especially sharia shares in 2018. The Stability of global CPO prices greatly influences fluctuations stock price in the agriculture industry, why company valuation is needed. The Assessing method employed DCF with the FCFF approach, and the Relative valuation method with PER and PBV approaches. The 2013-2017 financial report is a basis for projections examination during period 2018-2022, an example in research is a company that has the most substantial market value and equity in the ISSI Index - consisting of AALI, SIMP, and LSIP applied in the pessimistic, moderate, and optimistic scenario. The results of this study by adopting the DCF-FCFF method in all three scenarios, AALI intrinsic value, and LSIP considered to overvalued, SIMP is undervalued. By employing
Relative valuation method using the PBV and PER approach; the AALI, SIMP and LSIP values still lie in the industry range based on IDX 1st Quartal 2018. Referring to the calculation results, this study recommends sales for AALI and LSIP, buying for SIMP.
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