| Summary: | This research tend to estimate intrinsic value of share of PT Matahari
Putra Prima Tbk (MPPA) after divestment of Matahari Department Store using
income approach with discounted cash flow method and market approach (relative
valuation). Income approach using data from PT Matahari Putra Prima�s financial
report form 2006 to September 30, 2010. The analysis of discounted cash flow
method conducted by analyzing the projection of sales, balance sheet, determining
discount factor, projecting free cash flow, and estimating value. Market approach
analysis started by choosing comparable companies in the same line of business to
determine suitable multiples for converting book value of MPPA variables into
market value estimation.
The result of using income approach is Rp1.557,88 while market
approach resulting value of Rp1.247,16. Reconciliation of both values delivers
Rp1.464,67 as the intrinsic value of MPPA. Based on these value can be
concluded that the value of MPPA after the divestment of Matahari Department
Store is in fair value.
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