A Dynamic Model for Bank Valuation in Iran

In this paper, a model of the relative valuation of the price to book value with the PMG estimation method has been used to assess the value of banks and financial institutions in Iran between 2009:Q1 and 2017:Q4. The results demonstrate that the market price–to–book value ratio underreacts to changes in fundamental variables in the short-run. The correlation coefficient between the estimated price–to–book value ratio and its market value is moderate. Furthermore, the book value of equity of most banks in Iran converges to a negative value, which means price –to- book value ratio loses its power of interpretation.

Stock Valuation of Indonesia Pharmaceutical Company with COVID-19 Vaccination Development Prospects Amidst Pandemic Situation (Case Study of PT. Kalbe Farma, Tbk.)

As one of the world’s most populous countries with a fast-growing economy, Indonesia's market for pharmaceuticals has become very promising. COVID-19 pandemic that outbroken since early 2020 has brought a huge impact on the overall country condition while at the same time stimulate the growth of the pharmaceutical market as it is forecasted to grow at a CAGR of 6.3% between 2016 and 2021 according to IQVIA. This situation creates a reaction in the stock market especially of pharmaceutical companies that experienced an average increase of 67% since last year with its key driver of news regarding the distribution of Sinovac vaccine by some state-owned pharma companies as part of the national vaccination program. PT. Kalbe Farma, Tbk as one of the largest pharma companies in Indonesia is also accounting a positive growth over the years while also presented with bright prospects as a result of its strategic initiatives to collaborate with South Korea in developing COVID-19 vaccine and medication, named Genexine which is planned to be completed in Q3 2021. The possibility of success in this project might affect the company’s stock performance since it would result in bigger profitability for the company. In order to help investors to make a decision in this situation, the intrinsic value of the company stock is required. Therefore, conducting absolute and relative valuation are believed to be important in order to find the intrinsic value. This study examined absolute valuation using FCFF model and relative valuation using P/E and EV/EBITDA for KLBF. Result of the valuation suggested that the current stock price of IDR 1,445 is overvalued. The intrinsic value calculated from FCFF model is IDR 1,397 and based on the relative valuation models are IDR 1,330 and IDR 1,233 for EV/EBITDA and P/E ratio, respectively.

ANALYSIS OF STOCK INTRINSIC VALUE USING RELATIVE VALUATION ON AGRICULTURE SECTOR LISTED IN JII70 PERIOD 2016-2019

This study aims to determine the intrinsic value or fair value of shares and the position of share value in Agriculture sub-sector companies, whether Overvalued (expensive), undervalued (cheap), or fair-valued (fair) using the relative valuation method approach for the 2016 – 2019 observation period in Agriculture sub-sector companies. The population in this study were 70 samples of companies from various sub-sectors. Determination of the sample is with the technique of purose sampling. So that the sample obtained is three companies in the field of agriculture with the provision that they have the most liquid index. Calculation data is processed using Ms. Excel 2010. The calculation results using the Relative Valuation Method are that AALI and LSIP companies are recommended for sale because they are in an Overvalued position, while SIMP company shares are recommended to be purchased because they are in an undervalued position

Apple Inc. Analysis and Forecast Evaluation

Apple has been an American success story for quite a long time. After igniting the personal computer (PC) revolution in the 1970s and reinventing PC in the 1980s, it again brought various innovative and game-changing products, including smartphones, computers, and wearables in recent years. Its dominant product, iPhone, sparked years of massive growth and has become the biggest drive of the company’s success. Besides, with a market capitalization of more than $2T, Apple is currently the world’s most valuable company. This makes many investors interested in AAPL stock. Hence, this paper will explore whether the APPL stock is worth investing based on the analysis of its business model, SWOT analysis, and relative valuation in hope to provide some recommendations and predictions for investors.

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

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.

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

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.