| Summary: | Indonesian Share Exchange�s reserach resulted that share price of
PT. Sumber Alfaria Trijaya, Tbk. (�Company�) in the market as of September 30,
2011 was high. The purpose of this study is to value quantitatively the fair price of
Company�s share as of September 30, 2011 using Discounted Cash Flow (�DCF�)
method with two-stage Free Cash Flow to Equity model. Another purpose is to
determine the position of Company�s share price in the maket as of September 30,
2011 (whether undervalued, overvalued or fair valued) by comparing the share�s
fair price with its market price.
Results shows that the fair price of Company�s share as of September 30,
2011 is at Rp 1.910,- per share. While the market price of Company�s share as of
September 30, 2011 was at Rp 3.700,- per share. It shows that the Company�s
share price in the market as of September 30, 2011 was overvalued.
Overvalued position of Company�s share price in the market is an indication
for investors to sell their shares. Meanwhile, it is not feasible for prospective
investors to buy Company�s share at overvalued position.
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