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Journal : International Journal of Economics and Management Research

Fair Value Valuation Analysis of Stock Prices Using The Discounted Cash Flow (DCF) Approach In Telecommunication Companies In Indonesia Mukhlis; Pardomuan Sihombing; Tri Kunawangsih
International Journal of Economics and Management Research Vol. 4 No. 3 (2025): December : International Journal of Economics and Management Research
Publisher : Pusat Riset dan Inovasi Nasional

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55606/ijemr.v4i3.577

Abstract

PT Telkom Indonesia (Persero), Tbk (TLKM), PT XL Axiata, Tbk (EXCL), and PT Indosat, Tbk (ISAT) are three Indonesian telecommunications firms whose stocks will be valued using the Discounted Cash Flow technique from 2019 until 2023. According to the analysis, TLKM and EXCL stocks are undervalued, with market prices lower than their intrinsic values. This condition presents attractive investment opportunities for long-term investors, where potential gains may be realized if the companies' performance continues to improve and the market eventually appreciates the intrinsic value of the stocks. Conversely, ISAT stocks are identified as overvalued, with market prices exceeding their intrinsic values. This situation indicates excessive market expectations or the influence of certain external factors, making the decision to sell ISAT stocks a strategic move to realize capital gains before potential market corrections occur. These results emphasise how crucial it is to fully comprehend the internal and external aspects affecting company value before making any investing decisions. Investors are advised not to rely solely on valuation results but to also consider industry prospects, macroeconomic conditions, and company-specific issues to ensure more informed and strategic investment decisions. This study provides valuable insights for investors and market participants in identifying opportunities and risks in stock investments within the telecommunications sector.
Co-Authors ,, Rizal Abitur Asianto Agustina Suparyati, Agustina Amanda Yosephine Bonowati Amrie Firmansyah Anastasia Sianturi Andy Kurniawan, Andy Ardhiani Fadila Ardy Fardiansyah Arifin Hasudungan Manurung Augustina Kurniasih Bonowati, Yosephine Amanda Christi, Eva Aprilia Cynthia Java Al Maduri Dadan Nurhidayat Desmita Desmita Diamanta Putri, Rimada Diamanta Putri Difoasih, Garys Dini Hariyanti Ecryna Cyntia Hutapea Elia Zakchona Erlangga Tri Adhiguna Fitri Apriyana Gultom, Hesekiel Maranatha Gusfriyanto, Harri Hati, Elyana Husni, Ricky Albert Hutajalu, Clinton Banua Betlehem Ida Busnetty Indira Puspa Gustiah Irwan Daud Irwan Daud Jayawarsa, A.A. Ketut Kartikasari, Rachma Kasman Pandiangan Kuncoro, Ignatius Bayu Kwee, Yohanes Leni Hartati Levy Perwiro Garnoko Manik, Defriyanti Cicilia Manurung, Arifin Hasudungan Melitana, Cyndi Loisa Muhamad Taufiq Muhammad Sahirul Alim Muhammad Zilal Hamzah Mukhlis Novawiguna K, . . Nur Kamri Hardi Oktavia, Dinda Prabowo, Bumi Prabu Prakosa Andiantyo Pranata, Natanael Priambhodo, Yohanes Dimas Priyo Adiwibowo Putra, Rubby Prastya Putra, Wahyu Sastra Reza Alfianto Siregar, Muhammad Richo Dany Wijaya Richo Dany Wijaya, Richo Dany Rizal , Samsuar, Alfan Samsudin, Idris Sarva Jayana, Nur Satria Fajar Maulana Siagian, Fahri Gunawan Sri Dewi Nur Pasha Sri Marti Pramudena Sri Yani Kusumastuti Suhandi Suhandi Suhandi, Suhandi Sumiyarti Sundoro, Hary Saputra Tri Kunawangsih Tri Kunawangsih Purnamaningrum Triadji, Iwan Tumpal Samosir Tyara Pratiwi Poernomoputri VICTOR SIAGIAN Wahyuningsih, Mutia Yosephine Amanda Bonowati Zakchona, Elia Zakchona, Elia