Financial Performance and Valuation Assessment (Case Study: PT Astra International Tbk for the Period of 2015-2020)
| Main Authors: | Wijayanti, Firda Rahmanda; School of Business and Management, Institut Teknologi Bandung, Sukarno, Subiakto; School of Business and Management, Institut Teknologi Bandung |
|---|---|
| Format: | Article info eJournal |
| Bahasa: | eng |
| Terbitan: |
The Indonesian Journal of Business Administration
, 2022
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| Online Access: |
https://journal.sbm.itb.ac.id/index.php/IJBA/article/view/4598 |
Daftar Isi:
- The announcement of the spread of Covid-19 in Indonesia by President Joko Widodo, caused the JCI to fall to the level of IDR 3,937 in March 2020 from IDR 6,299 at the beginning of 2020. PT Astra International Tbk with the stock code ASII was also affected to fall to IDR 3,755 per share from IDR 6100 on February 2020. Not only that, the spread of this virus has also caused ASII's monthly sales to continue to decline. This situation makes investors need to know the external conditions and internal conditions of the company before making a decision. External conditions were carried out using PEST analysis and Porter's Five Forces analysis. The company's internal conditions using Common Size Analysis and Financial Ratio Analysis. The factors that most influence the rate of return on investment or ROE are obtained through DuPont analysis. Stock valuation uses the Absolute Valuation method with DCF Valuation and Relative Valuation using (P/E) Ratio as well as (M/B) Ratio. The results of the study concluded that overall PT. Astra International Tbk has a good performance. However, the company must increase the company's Activity Ratio which is below the industry average. Absolute Valuation with the DCF method shows ASII shares are undervalued. Relative valuation with (P/E) Ratio and (M/B) Ratio also shows ASII shares are undervalued.Keywords: Company Financial Performance , Stock Valuation, Discounted Cash Flow, Free Cash Flow, Price Earnings Ratio, Price to Book Value Ratio