Journal of Business and Management
Vol 9, No 2 (2020)

Valuation of a construction company, pt. Xyz – a case study

Lande, Dennis Aditya (Unknown)
Murtaqi, Isrochmani (Unknown)



Article Info

Publish Date
07 Jan 2021

Abstract

Abstract. PT. XYZ is a company that move in construction sector. PT. XYZ is not a publicly listed company and hasn’t planning on going IPO yet. The shares are owned by private investors. Recently, PT. XYZ is in talks with a potential shareholder to invest in the company. Existing shareholder of PT. XYZ is willing to give up a maximum of 20% dilution from the new share composition by issuing new shares. By doing valuation of PT. XYZ, we can calculate how much worth of 20% PT. XYZ share dilution to help PT. XYZ determine it price. The projection growth of PT. XYZ will consider the COVID-19 outbreak. Valuation of PT. XYZ will be using DCF approach. From DCF valuation, PT. XYZ intrinsic value is IDR 345,141,295,887 which is 1.83x their book value. Current number of share of PT. XYZ is 25,678 shares, which will become 32,098 shares after dilution. There will be 6,420 new shares that will be subscribed by new investor.Keywords: Construction Industry, Valuation, Discounted Cash Flow

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Journal Info

Abbrev

jbm

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

Journal of Business and Management (JBM)is an online journal that is published three times a year. It publishes research papers that give rigorous theoretical and practical insight of business and managament. JBM aims to provide a forum for the dissemination of theory application and research in all ...