| Summary: | This research aim to estimate an intrinsic value of PT INCO share when
tender offer by using discounted cash flow method and relative valuation. This
research also used data of PT INCO financial statement�s during the last five year
from 2006 until 2010. Method analysis of discounted cash flow conducted by :
sales or earnings projection analysis, financial statement projection, free cash flow
projection, discount rate determination and value estimation. Relative valuation
started with searching similar company in the same field of industry and
chosening and specifying appropriate ratio or multiples from similar company.
This Multiples used to convert a relevant book value variable from PT INCO
become an estimation of market value. Multiples or ratio which used were : PER
(Price Earning Ratio), PBV (Price to Book Value) and P / S (Price to Sales Ratio).
The result from this research by using discounted cash flow method
obtained an intrinsic value estimation of PT INCO share per 31 Desember 2010
range from Rp4.903,- up to Rp6.657,54 Result by using relative valuation
obtained the following result : for the estimation of stocks price per share
PT INCO by using PER equal to Rp2.817,44 using PBV ratio equal to Rp1.960,56
and using price to sales ratio equal to Rp125,-. The mean from this three method
equal to Rp4.903,-. Based on this both approaching, price of PT INCO share at
this time possibility of undervalued.
|
|---|