Stock Valuation of PT. Panca Budi Idaman, Tbk. (PBID) based on Free Cash Flow to the Firm and on Relative Valuation
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 08
Abstract
The stock valuation of PT Panca Budi Idaman, Tbk. (PBID), an Indonesian plastic packaging manufacturer, is evaluated using the absolute and relative valuation. The absolute valuation is based on Discounted Cash Flow (DCF) method. In relative valuation, PBID is compared to its peers, which in this study are IPOL, PDPP, and TRST. Indonesia’s significant economic growth and the vital role of the plastic industry are noting strong demand for plastic packaging despite environmental challenges and regulatory pressures. Financial performance from 2017 to 2023 is assessed through profitability, liquidity, and solvency ratios, demonstrating PBID’s efficient operations and robust financial health. Future cash flows are projected, discounted using PBID’s Weighted Average Cost of Capital (WACC), and the terminal value is calculated. The intrinsic value is estimated at IDR 3,987 per share, indicating undervaluation compared to the current price of IDR 1,325 per share. Relative valuation compares PBID to industry peers using EV/EBITDA, P/E, and P/B ratios, reinforcing the undervaluation finding. Investment recommendations suggest PBID’s stock as a buying opportunity due to its strong market position and favourable valuation metrics.
Authors and Affiliations
Adrianus Atma Adiwijaya, Isrochmani Murtaqi,
Keywords
Related Articles
- EP ID EP741965
- DOI 10.47191/ijcsrr/V7-i8-24
- Views 41
- Downloads 0
Roundpics Based on Process Approach to Improve Students’ Achievement in Writing
The objectives of this study are; 1) to find out the significant difference of student’s writing achievement between those who were taught through the modified roundtable technique with a picture based on the process app...
Implementation Importance-Performance Analysis Method to Increase Customer Satisfaction of Honda Motorcycle Dealer using Text Mining
Transportation is an essential aspect of people’s lives that plays an essential role in supporting economic, social, and cultural activities. Private transportation has become a basic need for Indonesian people, increasi...
Simple Multi-Attribute Rating Technique for Warehouse Location Selection (Case Study: PT. PPT)
Indonesia’s Manufacturing Industry, encompassing processing and non-oil and gas processing, grew in Q3 of 2022, contributing 17.88% and 16.10% to GDP. Transportation and storage played a significant part, with a 15.93% y...
Analysis Factors Affecting Investment Decisions among Students in Special Region of Yogyakarta
The level of investment among university students, as indicated by the increasing number of Single Investor Identification (SID), continues to grow, but students exhibit irrational behaviour in their investment decision....
Strategic Decision-Making: Implementing Artificial Intelligence for Customer Experience in XYZ Electricity
This case study outlines the challenges in resolving customer complaints at XYZ electricity provider, where the industry achieves only 89.16% against a 100% service level agreement, leading to poor customer experience (C...