| Summary: | PT. Asuransi Jasa Indonesia or Asuransi Jasindo is a state-owned company
operating in general insurance, which was founded in 1973. PT. Asuransi Jasa
Indonesia is planning to initiate an IPO (Initial Public Offering) to strengthen the
retention value for the insurance premium that they are receiving, so that they
could increase the company�s growth, and ultimately strengthening their Jasindo�s
position as the largest general insurance company in Indonesia.
The main issue that goes along with the growth of the insurance industry is
what what is the fair value (intrinsic value) for PT. Asuransi Jasindo. Based on
that instrinsic value, investors will be able to evaluate if the share price of PT.
Asuransi Jasindo in the IPO is at a fair price or not.
Using the discounted cash flow method, it is concluded that the intrinsic
value of PT. Asuransi Jasindo�s equity is Rp. 2,051,749,029,000. With the 425
thousand current shares, the intrinsic value per share is Rp. 4,287,645. This value
is higher than the price to book value of the firm, which is Rp. 2,127,747. It can
be conluded that the firm�s intrinsic value has gained significantly compared to its
book value, at approximately 207.1%, and the intrisic value is at 2.07x book
value.
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