Research Article
Valuation Analysis of PT XYZ's Initial Share Value Regarding the 2020 IPO Plan with Discounted Free Cash Flow and Relative Valuation Method
@INPROCEEDINGS{10.4108/eai.5-8-2020.2301192, author={Affandy Imam Sasongko and Edward Tanujaya}, title={Valuation Analysis of PT XYZ's Initial Share Value Regarding the 2020 IPO Plan with Discounted Free Cash Flow and Relative Valuation Method}, proceedings={Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5 - 6 August 2020, Purwokerto, Indonesia}, publisher={EAI}, proceedings_a={ICBAE}, year={2020}, month={10}, keywords={valuation discounted free cash flow relative valuation reinvestment rate sales projection}, doi={10.4108/eai.5-8-2020.2301192} }- Affandy Imam Sasongko
Edward Tanujaya
Year: 2020
Valuation Analysis of PT XYZ's Initial Share Value Regarding the 2020 IPO Plan with Discounted Free Cash Flow and Relative Valuation Method
ICBAE
EAI
DOI: 10.4108/eai.5-8-2020.2301192
Abstract
The PT XYZ is a company in the automotive industry in Indonesia that has a plan to offer its initial public offering or IPO in 2020. In the IPO activity it is necessary to analyze the price of the initial shares to be offered. This paper is a case study and aims to find the value of the first shares obtained through the valuation of the company PT XYZ. Valuations are carried out using the Discounted Free Cash Flow to Equity and Discounted Free Cash Flow to the Firm each method with two projection approaches, namely reinvestment rate and sales projections, and with the Relative Valuation method. The results of the valuation of PT XYZ's initial share price for the discounted free cash flow method are in the range of Rp706.76 to Rp2,002.49 per share, while the results of the calculation of relative valuation are at Rp2,433.32 per share
