Research Paper
Year: 2019 | Month: November | Volume: 6 | Issue: 11 | Pages: 61-66
Analysis of the Stock Value of PT. Bank ICB Bumiputera TBK in Pre and Post Acquisition Using Discounted Return Model and Relative Valuation
Muhammad Yaufi, Fachrudin, Khaira Amalia Fachrudin
Master of Management, Universitas Sumatera Utara, Indonesia
Corresponding Author: Muhammad Yaufi
ABSTRACT
The objective of the research was to determine the stock intrinsic value of PT. Bank ICB Bumiputera Tbk in pre and post acquisition. The calculation of the stock intrinsic value estimation was done by using stock assessment method, discounted return model (free cash flow to equity) and relative valuation (price to book value), supported by top-down analysis by doing macroeconomic analysis, analysis of five forces porter industry, and financial statement analysis to determine basic assumption in calculating the stock intrinsic value of PT. Bank ICB Bumiputera Tbk in pre and post acquisition. The result of the calculation by using discounted return model (free cash flow to equity) showed the stock intrinsic value in pre acquisition was 121 Rupiah and in post acquisition it was 70 Rupiah. The result of the calculation by using relative valuation (price to book value) showed that the stock intrinsic value in pre acquisition was 98 Rupiah and in post acquisition was 78 Rupiah. From the comparison between the stock intrinsic value and market price, it was found that BABP stock was in the position of undervalued.
Key words: Stock Intrinsic Value, Discounted Return Model, Relative Valuation
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