Articles

Internal and External Determinants of Firm Value: A Study on the Manufacturing Companies in Indonesia

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This study describes the influence of internal and external factors of the company on firm value which is a verification study using an explanatory survey method. The data used is secondary data available on the official website of the Indonesia Stock Exchange. While the type of data used is quantitative data. The sampling method is to use a purposive sampling method, so that 7 companies can be sampled in this study.

The results of this study indicate that all variables indicate that the company’s internal and external factors have an influence on the Firm Value of the food and beverage sub-sector listed on the Indonesia Stock Exchange in 2014-2020. Suggestions for companies, namely companies need to improve company performance in order to increase Firm Value, especially the use of costs and working capital management which can increase positive perceptions from investors so that they are reflected in Firm Value.

Financial Performance Analysis and Stock Valuation of Coal Mining Company during Covid19 Pandemic (Case Study: Adaro Energy Indonesia)

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Coal is one of the commodity that is mined and consumed a lot in Indonesia and also the world. The thermal coal is needed for the electricity meanwhile metallurgical coal is needed in the steel making industry. Towards mid-2021, the coal price has escalated to all time high. It affects stock price performance of several coal mining companies in Indonesia. From having a bad downturn in 2020 due to Covid-19 and less energy demand, coal starts to gain more demand in 2021 in line with more industrial activities and economy recovery. In Indonesia, one of the coal mining company with one of the largest reserve and largest market capitalization is Adaro Energy.
The purpose of this research is to analyse the intrinsic value of Adaro Energy to help investors gain insight especially after the world economy is recovering after two years in the pandemic crisis. The financial performance of Adaro Indonesia will be projected for the upcoming five years. From the calculation using Discounted Cash Flow, it is found that the intrinsic value is IDR3, 263.56. Considering the market value of Adaro in the closing date of 2021 is IDR2, 250, thus the expected rates of return is 45% or IDR1, 014. Form the calculation using Dividend Discounted Model, the intrinsic value is IDR3, 494.05 (55, 3% return); using PBV, the intrinsic value is IDR3, 513 (56% return); using EV/EBITDA, the intrinsic value is IDR2, 605 (16% return).