COMPANY VALUATION OF PT ASTRA OTOPARTS TBK: USING THE DISCOUNTED CASH FLOW AND RELATIVE VALUATION METHODS
DOI:
https://doi.org/10.31539/costing.v8i1.14165Keywords:
Valuation, Intrinsic Value, Undervalued, Market Price, Investment.Abstract
This study evaluates the valuation and investment potential of PT Astra Otoparts Tbk. (AUTO), a market leader in Indonesia's automotive component industry, using Discounted Cash Flow (DCF) and Relative Valuation approaches. It analyzes AUTO’s historical financial performance and external business factors using PESTEL and Porter’s Five Forces. The DCF method estimates the company’s intrinsic value through future operational earnings, applying Weighted Average Cost of Capital (WACC) and terminal growth rates. Additionally, Relative Valuation compares AUTO’s key financial ratios (P/E, P/B, EV/EBITDA) with industry benchmarks. Results indicate AUTO is undervalued, with its intrinsic value exceeding the market price. Moreover, AUTO’s superior P/E, PBV, and EV/EBITDA multiples highlight its competitive position, making it an attractive investment opportunity
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Barbara, C., Cortis, D., Perotti, R., Sammut, C., & Vella, A. (2017). The European insurance industry: A PEST analysis. International Journal of Financial Studies, 5(2), 1-20.
Behr, A., Mielcarz, P., & Osiichuk, D. (2018). Terminal value calculation in DCF valuation models: An empirical verification. Financial Internet Quarterly (formerly e-Finanse), 14(1). Sciendo.
BPS (2024). Jumlah Penduduk Menurut Kelompok Umur dan Jenis Kelamin, 2023. https://www.bps.go.id/id/statistics-table/3/WVc0MGEyMXBkVFUxY25KeE9HdDZkbTQzWkVkb1p6MDkjMw==/jumlah-penduduk-menurut-kelompok-umur-dan-jenis-kelamin--2023.html?year=2023
Corporate Finance Institute. Coverage Ratio. https://corporatefinanceinstitute.com/resources/accounting/coverage-ratio-overview/
Dalirazar, S., & Sabzi, Z. (2020). Strategic analysis of barriers and solutions to development of sustainable buildings using PESTLE technique. International Journal of Construction Management, 23(1), 167-181.
Damodaran, Aswath. (2024). Country Default Spreads and Risk Premiums. https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html
Damodaran, Aswath. (2024). Ratings, Interest Coverage Ratios and Default Spread. https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ratings.html
Dong, Y. (2018, March). Enterprise value evaluation based on FCFF model-a case analysis of beixinyuan company. In 2nd International Conference on Economics and Management, Education, Humanities and Social Sciences (EMEHSS 2018)(pp. 615-620). Atlantis Press.
Gitman, Lawrence J., Zutter, Chad J.. (2015). Principles of managerial finance (14th ed. Global ed.). Pearson Education.
IDN Financials. (2024). Domestic car sales decline, AUTO’s net profit still grew 38.9% in 2023. https://www.idnfinancials.com/news/49192/domestic-car-sales-decline-autos-profit-grew
Kabir, S. M. S. (2016). Methods Of Data Collection Basic Guidelines for Research: An Introductory Approach for All Disciplines (first ed., pp. 201-275).
Koller, T., Goedhart, M., & Wessels, D. (2020). Valuation: Measuring and Managing the Value of Companies (7th ed.).
Kruschwitz, L., & Löffler, A. (2020). Stochastic discounted cash flow: A theory of the valuation of firms. Springer.
Law Number 16 of 2016 concerning the Ratification of the Paris Agreement to the United Nations Framework Convention on Climate Change.
Presidential Regulation No. 55 of 2019, as amended by Presidential Decree No.79 of 2023 on the Acceleration of Battery EV Programs for Road Transportation.
PT Astra Otoparts Tbk. (2023). Annual Report 2023. Astra Otoparts. https://www.astra-otoparts.com/Content/PDF/Annual-Reports/0annual-report-pt-astra-otoparts-tbk-2023.pdf
Reuters. AUTO.JK Key Metrics. Accessed July 2024. https://www.reuters.com/markets/companies/AUTO.JK/key-metrics/price-and-volume
Rothaermel, F. T. (2017). Strategic Management 3e. New York: McGraw-Hill.
Salim, M. R. (2023): Stock Valuation of PT Indika Energy Tbk: Impact of Net Zero Emission Transition, Master’s Final Project, Institut Teknologi Bandung.
Statista (2024). GDP Share of Indonesia in 2023 by sector. https://www.statista.com/statistics/1019099/indonesia-gdp-contribution-by-industry/
World Bank Group. GDP (current US$) – Indonesia. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2023&locations=ID&most_recent_value_desc=false&start=2014
World Government Bond. Indonesia 10 Years Government Bonds Yield per December 2023. https://www.worldgovernmentbonds.com/country/indonesia/#title-curve
Worldometer. Indonesia GDP. https://www.worldometers.info/gdp/indonesia-gdp/#:~:text=Nominal%20(current)%20Gross%20Domestic%20Product,when%20Real%20GDP%20was%20%241%2C065%2C710%2C000%2C000.
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Published
2025-01-31
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