scholarly journals Does The Stock of Indonesian Provider Tower Industry Have a Fair Value?

2018 ◽  
Vol 6 (4) ◽  
pp. 130-139
Author(s):  
Saptono Saptono ◽  
Farida Titik Kristanti
Keyword(s):  
Cash Flow ◽  
Stock Prices ◽  
Stock Exchange ◽  
Intrinsic Value ◽  
Fair Value ◽  
Jel Classification ◽  
Free Cash Flow ◽  
Stock Valuation ◽  
Market Prices ◽  
Relative Valuation

Objective - The objective of this study is to evaluate the stock intrinsic value of companies listed on the Indonesian Stock Exchange. The evaluation is carried out by using a DCF method of Free Cash Flow to Firm (FCFF) approach, and a relative method of Price to Earnings Ratio (PER) and Price to Book Value (PBV) approaches. Each approach uses three scenarios of optimism, moderation and pessimism. Methodology/Technique - The historical data of the companies between 2014 and 2017 was used to predict their performance in the period between 2018 and 2021. Findings - The results of this study indicate that by comparing the stock prices to their intrinsic value of the stock valuation of the DCF-FCFF, the stock market prices as of 1 January 2018 according to the optimistic scenario show that TBIG and SUPR were undervalued, while TOWR and IBST were overvalued. In the moderate scenario, TBIG and SUPR were undervalued, while TOWR and IBST were overvalued. Novelty - Meanwhile, TBIG, TOWR and IBST were overvalued and only SUPR was undervalued in the pessimistic scenario. Relative valuation using a PER approach in all scenarios indicates that TBIG, TOWR and IBST were overvalued and SUPR was undervalued. Finally, through a PBV approach, the relative valuation of TOWR, SUPR and IBST were overvalued and TBIG was undervalued in all scenarios. Type of Paper - Empirical. Keywords: Free Cash Flow to Firm; Relative Valuation; Tower Provider Industry; Intrinsic Value; Valuation. JEL Classification: G14, G15, G19.

scholarly journals Performance Evaluation of Stocks’ Valuation Models at MSE

2018 ◽  
Vol 11 (2) ◽  
pp. 7-23
Author(s):  
Zoran Ivanovski ◽  
Zoran Narasanov ◽  
Nadica Ivanovska
Keyword(s):  
Cash Flow ◽  
Stock Prices ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Main Task ◽  
Stock Valuation ◽  
Market Prices ◽  
Valuation Model ◽  
Relative Valuation ◽  
Dcf Model

Abstract Subject and purpose of work: The main task of this paper is to examine the proximity of valuations generated by different valuation models to stock prices in order to investigate their reliability at Macedonian Stock Exchange (MSE) and to present alternative “scenario” methodology for discounted free cash flow to firm valuation. Materials and methods: By using publicly available data from MSE we are calculating stock prices with three stock valuation models: Discounted Free Cash Flow, Dividend Discount and Relative Valuation. Results: The evaluation of performance of three stock valuation models at the MSE identified that model of Price Multiplies (P/E and other profitability ratios) offer reliable stock values determination and lower level of price errors compared with the average stocks market prices. Conclusions: The Discounted Free Cash Flow (DCF) model provides values close to average market prices, while Dividend Discount (DDM) valuation model generally mispriced stocks at MSE. We suggest the use of DCF model combined with relative valuation models for accurate stocks’ values calculation at MSE.

scholarly journals Stock Valuation in Pharmaceutical Sub-Sector Companies using the Discounted Cash Flow and Relative Valuation Methods in the 2013-2020 Period

2021 ◽  
pp. 167-176
Author(s):  
Afna Dalilah ◽  
Riko Hendrawan
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Fair Value ◽  
Free Cash Flow ◽  
Discounted Cash Flow ◽  
Stock Valuation ◽  
Industry Growth ◽  
Valuation Method ◽  
Pessimistic Scenario ◽  
Relative Valuation

This research aims at calculating the fair value of shares of pharmaceutical companies listed on the Indonesia Stock Exchange (IDX). The data used in this research is historical data from the 2013-2020 financial statements, which are used as the basis for projections in 2021-2025. The method used in this research is Discounted Cash Flow (DCF) method with Free Cash Flow to the Firm (FCFF) approach and Relative Valuation method with Price to Earning Ratio (PER) and Price to Book Value (PBV) approaches in three scenarios. The three scenarios used are the optimistic scenario (condition above industry growth), the moderate scenario (the most likely condition for the company), and the pessimistic scenario (the average condition of the industry). The results of the research showed that by using the DCF-FCFF method, KAEF and PYFA stocks experienced overvalued conditions in all scenarios. Meanwhile, KLBF and DVLA stocks were undervalued in all scenarios. Then, from the calculation of the Relative Valuation method, each company was still within the industry range in all scenarios. Overall, KAEF stocks were overvalued by 57.817%, KLBF stocks were undervalued by 7.879%, DVLA stocks were undervalued by 370.865%, and PYFA stocks were overvalued by 16.662% both in DCF method and in Relative Valuation method.

scholarly journals Stock Valuation Analysis of Islamic Bank in Related to Forming Holding

2021 ◽  
Vol 10 (2) ◽  
pp. 205-214
Author(s):  
Anton Adventus Kacaribu
Keyword(s):  
Cash Flow ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Fair Value ◽  
Free Cash Flow ◽  
Financial Industry ◽  
Stock Valuation ◽  
Public Company ◽  
The Republic ◽  
Relative Valuation

This study aims to estimate the fair value of equity per share and to analyze undervalued or overvalued value of the company PT. Bank BRI Syariah Tbk. Result on this study combine market approach, book value approach and discount of future cash flow approach, so it can deliver comprehensive result. On the other side, this study or valuation specialize on financial industry due to uniqueness and complexity of the industry. PT. Bnk BRI Syariah Tbk was chosen, because of the plan ot the ministry of state-owned enterprises of the Republic of Indonesia to merge 3 sharia banks such as PT Bank BRI Syariah Tbk, PT Bank Syariah Mandiri, and PT Bank BNI Syariah. Only, PT Bank BRI Syariah is public company. This research is a descriptive analysis, the data and information used are secondary data from PT Bank BRI Syariah Tbk through its annual report, while other data used come from data and reports from other supporting institutions. This study uses three methods to value the share, free cash flow to equity, relative valuation, and abnormal earning. The conclusion is fair value of PT Bank BRI Syariah Tbk is IDR 482.47, so the value is undervalued.

scholarly journals Stock Valuation using Discounted Cash Flow Method with Free Cash Flow to Equity and Relative Valuation Approaches on State-Owned Banks Listed on IDX for 2021 to 2025 Period Projection

2021 ◽  
pp. 191-201
Author(s):  
Almirah Jumran ◽  
Riko Hendrawan
Keyword(s):  
Cash Flow ◽  
Stock Prices ◽  
Intrinsic Value ◽  
Free Cash Flow ◽  
Regulatory Capital ◽  
Discounted Cash Flow ◽  
Industry Growth ◽  
Valuation Method ◽  
Price Earnings Ratio ◽  
Relative Valuation

This study aims to project the intrinsic value of state-owned banks listed on IDX for the 2021 to 2025 projection. This study uses the Discounted Cash Flow (DCF) method with the Free Cash Flow to Equity (FCFE) approach specifically for banks by looking at the regulatory capital. Meanwhile, it is also used the Relative Valuation method with the Price to Book Value (PBV) and Price Earnings Ratio (PER) approaches. This study uses three scenarios will be used, which consist of a pessimistic scenario (the average condition of the industry), a moderate scenario (the same condition as the company's growth), and an optimistic scenario (a condition above industry growth), which aims to project the stock value over the next five years. The data used in this study comes from historical data during the 2016 to 2020 period. Based on the results, the stock prices of state-owned banks using the FCFE method shows undervalued results for all scenarios. Meanwhile, using the relative valuation method, PBV in the optimistic scenario only shows BBNI undervalued conditions. In addition, in moderate and pessimistic scenarios, only BBRI shows overvalued conditions. Furthermore, PER shows undervalued results for all scenarios.

Analysis the Effect of Financial Distress, Leverage and Free Cash Flow on Earnings Management

2021 ◽  
Vol 6 (3) ◽  
pp. 111-119
Author(s):  
Rifka Aulia Inayah ◽  
Amiruddin Amiruddin ◽  
Grace T. Pontoh
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Financial Distress ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Total Sample ◽  
Multiple Linear Regression Analysis ◽  
Jel Classification ◽  
Free Cash Flow ◽  
Company Value

Objective - This study aims to determine and analyze the effect of financial distress, leverage, free cash flow on earnings management. Methodology/Technique – The object of this research is all companies listed on the Indonesia Stock Exchange with an observation period of 2019. The sample determination uses the purposive sampling method and a total sample of 124 companies is obtained. The analysis technique used is multiple linear regression analysis. Findings - The results show that financial distress has no significant effect on earnings management. Leverage and free cash flow have a negative and significant effect on earnings management. Novelty - This research contributes to signalling theory, which is used by company managers who have better information about their company will be encouraged to convey this information to potential investors where this is intended so that companies can increase company value by sending signals through financial statements of companies listed on the IDX. Type of Paper: Empirical. JEL Classification: G32, M21, M41, M42. Keywords: Financial Distress; Leverage; Free Cash Flow and earnings Management

scholarly journals Determinan atas Stubben Earning Management Model: Perspektif Teori Pensinyalan

1970 ◽  
Vol 4 (01) ◽  
pp. 47-62
Author(s):  
Melly Roosmayani ◽  
Nurmala Ahmar
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Jel Classification ◽  
Free Cash Flow ◽  
Earning Management ◽  
Management Model ◽  
Model Interaction ◽  
Purposive Sampling ◽  
Revenue Model

ABSTRACT The purpose of this research is to examine the factors that affect earning management in firms that registered in Indonesian Stock Exchange during five years 2010-2014. Determination of the sample in this study carried out purposive sampling. This study involved 14 companies listed on the Indonesian Stock Exchange to take 5 years of research starting from the year 2010-2014. The factors examined are leverage, profitability and free cash flow. This study adopts the research conducted by Stubben (2010) where there are two measurements model is the discretionary revenue model consists of revenue model and conditional revenue model. Tools of analysis used moderate regression analysis. Research results show that leverage had no effect on earning management revenue model but leverage had effect on earning management conditional revenue model. Profitability and free cash flow had no effect on earning management revenue model and conditional revenue model. Interaction between free cash flow and leverage and interaction between free cash flow and profitability had no effect on earning management revenue model and conditional revenue model. The contribution of this research is debt asset ratio and conditional revenue model could give the signal to shareholder that management decrease practice earning management. ABSTRAK Penelitian ini bertujuan untuk menguji faktor faktor yang mempengaruhi praktik manajemen laba pada perusahaan perusahaan yang tercatat di Bursa Efek Indonesia (BEI) selama periode 2010-2014. Penentuan sampel dalam penelitian ini dilakukan secara purposive sampling. Penelitian ini melibatkan 14 perusahaan yang terdaftar pada Bursa Efek Indonesia dengan mengambil 5 tahun penelitian mulai tahun 2010-2014. Faktor faktor yang diuji adalah leverage, profitabilitas dan arus kas bebas. Penelitian ini mengadopsi pada penelitian yang dilakukan oleh Stubben (2010) dimana terdapat dua model pengukuran revenue discretionary model yang terdiri dari revenue model dan conditional revenue model. Alat analisis yang digunakan adalah moderate regresi analisis. Berdasarkan hasil penelitian dapat disimpulkan: leverage tidak berpengaruh terhadap manajemen laba revenue model tetapi leverage berpengaruh terhadap praktik manajemen laba conditional revenue model. Profitabilitas dan arus kas bebas tidak berpengaruh terhadap praktik manajemen laba baik revenue model maupun conditional revenue model. Interaksi antara arus kas bebas dengan leverage dan interaksi antara arus kas bebas dengan profitabilitas tidak berpengaruh terhadap praktik manajemen laba baik revenue mode maupun conditional revenue model. Kontribusi penelitian ini dapat menunjukkan bahwa hubungan debt to asset ratio dengan conditional revenue model memberikan signal kepada para pemilik saham dimana manajemen mengurangi praktik manajemen laba terhadap suatu perusahaan. JEL Classification: M41, C39

scholarly journals Determinan atas Stubben Earning Management Model: Perspektif Teori Pensinyalan

1970 ◽  
Vol 4 (01) ◽  
pp. 47-62
Author(s):  
Melly Roosmayani ◽  
Nurmala Ahmar
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Jel Classification ◽  
Free Cash Flow ◽  
Earning Management ◽  
Management Model ◽  
Model Interaction ◽  
Purposive Sampling ◽  
Revenue Model

ABSTRACT The purpose of this research is to examine the factors that affect earning management in firms that registered in Indonesian Stock Exchange during five years 2010-2014. Determination of the sample in this study carried out purposive sampling. This study involved 14 companies listed on the Indonesian Stock Exchange to take 5 years of research starting from the year 2010-2014. The factors examined are leverage, profitability and free cash flow. This study adopts the research conducted by Stubben (2010) where there are two measurements model is the discretionary revenue model consists of revenue model and conditional revenue model. Tools of analysis used moderate regression analysis. Research results show that leverage had no effect on earning management revenue model but leverage had effect on earning management conditional revenue model. Profitability and free cash flow had no effect on earning management revenue model and conditional revenue model. Interaction between free cash flow and leverage and interaction between free cash flow and profitability had no effect on earning management revenue model and conditional revenue model. The contribution of this research is debt asset ratio and conditional revenue model could give the signal to shareholder that management decrease practice earning management. ABSTRAK Penelitian ini bertujuan untuk menguji faktor faktor yang mempengaruhi praktik manajemen laba pada perusahaan perusahaan yang tercatat di Bursa Efek Indonesia (BEI) selama periode 2010-2014. Penentuan sampel dalam penelitian ini dilakukan secara purposive sampling. Penelitian ini melibatkan 14 perusahaan yang terdaftar pada Bursa Efek Indonesia dengan mengambil 5 tahun penelitian mulai tahun 2010-2014. Faktor faktor yang diuji adalah leverage, profitabilitas dan arus kas bebas. Penelitian ini mengadopsi pada penelitian yang dilakukan oleh Stubben (2010) dimana terdapat dua model pengukuran revenue discretionary model yang terdiri dari revenue model dan conditional revenue model. Alat analisis yang digunakan adalah moderate regresi analisis. Berdasarkan hasil penelitian dapat disimpulkan: leverage tidak berpengaruh terhadap manajemen laba revenue model tetapi leverage berpengaruh terhadap praktik manajemen laba conditional revenue model. Profitabilitas dan arus kas bebas tidak berpengaruh terhadap praktik manajemen laba baik revenue model maupun conditional revenue model. Interaksi antara arus kas bebas dengan leverage dan interaksi antara arus kas bebas dengan profitabilitas tidak berpengaruh terhadap praktik manajemen laba baik revenue mode maupun conditional revenue model. Kontribusi penelitian ini dapat menunjukkan bahwa hubungan debt to asset ratio dengan conditional revenue model memberikan signal kepada para pemilik saham dimana manajemen mengurangi praktik manajemen laba terhadap suatu perusahaan. JEL Classification: M41, C39

scholarly journals Analysis of Islamic Banks’ Merger in Indonesia

2021 ◽  
Vol 4 (2) ◽  
pp. 112-120
Author(s):  
Fitri Mareta ◽  
Heliani Heliani ◽  
Siti Elisah ◽  
Andini Ulhaq ◽  
Indri Febriani
Keyword(s):  
Market Share ◽  
Cash Flow ◽  
Islamic Law ◽  
Stock Exchange ◽  
Profit Sharing ◽  
Free Cash Flow ◽  
Islamic Banks ◽  
Discounted Cash Flow ◽  
The Public ◽  
Relative Valuation

Islamic bank is a bank that collects funds from the public by using system profit sharing for every profit it gets and in carrying out its activities in accordance with Islamic law. Remembering that in Indonesia most of the population is Muslim, therefore they need a bank that works in accordance with Islamic law. Considering the number of percentages of Islamic banks in Indonesia are still small and cannot yet dominate the market share, therefore this research is expected to find out whether the merging of 3 Islamic banks (BRIS, BSM and BNIS) able to control market share or not. To see the synergy resulting from this merger is used methods Discounted Cash Flow - Free Cash Flow to Equity and Relative Valuation - Price to Book Ratio. The data used are the financial statements of each bank from 2014 to 2019 which are available on the Indonesia Stock Exchange (IDX) or the websites of each bank.

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