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Research Paper | Management | Indonesia | Volume 7 Issue 4, April 2018 | Popularity: 6.8 / 10
Telecommunication Company Share Valuation Using Discounted Cash Flow and Relative Valuation Method Listed in Indonesia Stock Exchange for Forecast
Lidya Vega Neaxie, Riko Hendrawan
Abstract: This research aimed to take an equitable valuation in estimating the stock price at the telecommunication companies recorded in the Indonesia Stock Exchange. It used DCF method within the FCFF approach and relative valuation methods including PER, PBV and enterprise multiple approaches. Three scenarios involved in this research, Pessimistic scenario (the condition of industries in average), moderate scenario (the most potential condition) and optimistic scenario (the condition above industry growth). The research data were derived from historical data 2006 - 2016 which considered as the reference for the projection years, 2017-2020. Results of this research presented that, in optimistic scenario of DCF, the intrinsic value of TLKM is undervalued, ISAT is overvalued, EXCL is undervalued. In moderate scenario, the intrinsic value of TLKM is undervalued, ISAT is overvalued, EXCL is overvalued. In pessimistic scenario, the intrinsic value of TLKM is overvalued, ISAT is overvalued, EXCL is overvalued. Furthermore, in Relative Valuation method within PER approach, the intrinsic value of TLKM is undervalued, ISAT is overvalued and EXCL is undervalued. In PBV approach, the intrinsic value of TLKM is overvalued, ISAT is undervalued and EXCL is undervalued. In multiple EBITDA, the intrinsic value of TLKM is overvalued, ISAT is undervalued and EXCL is undervalued.
Keywords: Discounted Cash Flow, Intrinsic Values, Relative Valuation, Telecommunication Sector, Valuation
Edition: Volume 7 Issue 4, April 2018
Pages: 1441 - 1447
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