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Journal : Quantitative Economics and Management Studies

Business Valuation Analysis Using the Discounted Cash Flow (DCF) and Price to Earnings Ratio (PER) Methods: Case Study on Telecommunication Subsector Companies Listed on Indonesia Stock Exchange (IDX) Radius, Radius; Sriwati, Sriwati
Quantitative Economics and Management Studies Vol. 6 No. 3 (2025)
Publisher : PT Mattawang Mediatama Solution

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35877/454RI.qems3970

Abstract

This study aims to analyze business valuation in telecommunication subsector companies listed on the Indonesia Stock Exchange (IDX) using two valuation methods, namely Discounted Cash Flow (DCF) and Price to Earnings Ratio (PER). The data used in this study were obtained from the company's financial statements and stock market data. The results showed that based on the DCF method, PT Indosat Tbk (ISAT) and PT Smartfren Telecom Tbk (FREN) are overvalued, while PT XL Axiata Tbk (EXCL) and PT Telkom Indonesia (Persero) Tbk (TLKM) are undervalued. Meanwhile, based on the PER method, only ISAT shows an undervalued condition, while other companies are also classified as undervalued compared to the industry average. The differences in results between the two methods shows that the selection of valuation methods affects the interpretation of a company’s stock value.
Co-Authors , Jennifer Aisyah Aisyah Alfiani, Rida Amiruddin, Kamelia Anggeni, Tasya Anggriani, Nurul Mila ariyati, Yannik Azis, Dhenny Asmarazisa Azwarini, Fallia Maylafaiza Bachtiar Bachtiar Bambang Subiyakto Bon, Abdul Talib Cahyani Putri, Cilvia Debataraj, Lestari Novianti Dewicca Fatma Nadilla, Dewicca Fatma Ersis Warmansyah Abbas Erwin Yulianto Estralita Trisnawati Fahira Sahna Gazali, Nur Samsi Amma Faridah Faridah Fathurrahman Fathurrahman Febriani, Ade Riska Goh, Erica Hanafie, Ahmad Hati, Ravika Permata Helmi Akmal Heri Susanto Hery Porda Nugroho Putro Irwan Izzi, Hubbul Jeffi Mutiara Jennifer Jennifer Karim, Saktiani Laksa Kirana, Alika Lie, irene kim Lilis Suryani M.Si, musrawati ST Mansyur Mansyur Mardiani, Fitri Maria Margaretha Vicitta W. N. Sogen Mira Yona Muhammad Firnanda Muhammad Iqbal Muhammad Rozi Muliawati Muliawati Nunuk Suryani Nurhayati Nurhayati Nurul Habib, Muhammad Perdana, Muhammad Putra Wahyu Prawitasari, Melisa Putra, Irgi Fahreza Putri, Ni Made Febrianti Eka Rachman, Fitriana Sidikah Radius, Radius Rahman Hasibuan, Rahman Rahman, Fadhli Rahman, Muhammad Fathur Rahmawati, Maulida Ramadhan, Denny Ammari Ramon Zamora, Ramon Ratih Permatasari Revo, Revo Rezaldi, Mohammad Rizky Riantini, Riantini RICO, MUHAMMAD Ridhani, M. Taufik Riyanni, Riyanni Rizki Eka Putra, Rizki Eka Rochgiyanti Ruhanda, Ruhanda Safira, Intan Saputra, Wahyu Setiawan Sariyatun Sariyatun Sastra Tamami, Sastra Setiawan, Yusak Eliezer Siswandari Siswandari, Siswandari Siswani, Sri Siti Mawaddah, Siti Sogen, Maria Margaretha Vicitta W. N. Sunardi Sunardi Supaedi, Supaedi Susilayanti, Susilayanti Sutedja, Natasya Emillia Syahira, Nabila Syauri, Muhammad Sofian tanjung, rona Tibrani Tibrani, Tibrani Usman, Rini Rusmaini Wafa, Itmamil Wahdah, Wahdah Wawan Prasetyo, Wawan Wisnu Subroto Yanti, Imbar Desi Mutri Zainal Abidin Zulkarnaen Zulkarnaen Zulkifli Zulkifli