Journal of Economic, Bussines and Accounting (COSTING)
Vol. 8 No. 1 (2025): COSTING : Journal of Economic, Bussines and Accounting

COMPANY VALUATION OF PT ASTRA OTOPARTS TBK: USING THE DISCOUNTED CASH FLOW AND RELATIVE VALUATION METHODS

Muttaqin Rizki Putra (Institut Teknologi Bandung)



Article Info

Publish Date
31 Jan 2025

Abstract

This study evaluates the valuation and investment potential of PT Astra Otoparts Tbk. (AUTO), a market leader in Indonesia's automotive component industry, using Discounted Cash Flow (DCF) and Relative Valuation approaches. It analyzes AUTO’s historical financial performance and external business factors using PESTEL and Porter’s Five Forces. The DCF method estimates the company’s intrinsic value through future operational earnings, applying Weighted Average Cost of Capital (WACC) and terminal growth rates. Additionally, Relative Valuation compares AUTO’s key financial ratios (P/E, P/B, EV/EBITDA) with industry benchmarks. Results indicate AUTO is undervalued, with its intrinsic value exceeding the market price. Moreover, AUTO’s superior P/E, PBV, and EV/EBITDA multiples highlight its competitive position, making it an attractive investment opportunity

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Journal Info

Abbrev

COSTING

Publisher

Subject

Economics, Econometrics & Finance

Description

COSTING : Journal of Economic, Bussines and Accounting reviewed covers theoretical and applied research in the field of Economics, Business and Accounting. Priority is given to those articles which satisfy the main scope of the journal, and have an impact in the research areas of interest. ...