Research Article
Stock Valuation Using Discounted Cash Flow and Relative Valuation Methods
@INPROCEEDINGS{10.4108/eai.5-10-2022.2325901, author={Jihan Alfadilla and Winanda Wahana Warga Dalam}, title={ Stock Valuation Using Discounted Cash Flow and Relative Valuation Methods}, proceedings={Proceedings of the 4th International Conference on Applied Economics and Social Science, ICAESS 2022, 5 October 2022, Batam, Riau Islands, Indonesia}, publisher={EAI}, proceedings_a={ICAESS}, year={2023}, month={1}, keywords={discounted cash flow property and real estate relative valuation valuation}, doi={10.4108/eai.5-10-2022.2325901} }- Jihan Alfadilla
Winanda Wahana Warga Dalam
Year: 2023
Stock Valuation Using Discounted Cash Flow and Relative Valuation Methods
ICAESS
EAI
DOI: 10.4108/eai.5-10-2022.2325901
Abstract
This research aims to determine the intrinsic value of stocks in the property and real estate sector listed on the Indonesia Stock Exchange using Discounted Cash Flow (DCF) method with Free Cash Flow to Firm (FCFF) approach and Relative Valuation (RV) method with PBV and PER approaches. The samples of this research were MTLA, JRPT, DMAS, CTRA, MKPI, and PPRO. Data used were historical financial data from 2015-2019 to calculate the historical financial performance of each company and projected from 2020-2024. The result found that by using the DCF-FCFF method, MTLA, JRPT, DMAS, and CTRA shares were undervalued in all scenarios. MKPI and PPRO shares were overvalued in all scenarios. Meanwhile, by using the Relative Valuation method, MTLA were undervalued by 7.82%, JRPT were undervalued by 32.97%, DMAS were undervalued by 67.85%, CTRA were undervalued by 32.45%, MKPI were overvalued by -47.69%, and PPRO were undervalued by 33.78%.