<![CDATA[This study estimates the intrinsic value of PT PP London Sumatra Indonesia Tbk (LSIP) shares using discounted cash flow (DCF), a dividend discount model (DDM), and historical multiples. The three-model approach is used because plantation earnings are exposed to commodity-price cycles, while LSIP holds substantial net cash and maintains a relatively conservative payout ratio. The data comprise consolidated financial statements for 2020–2025, 72 monthly observations of LSIP and Jakarta Composite Index prices, dividend data, and the yield on a one-year Indonesian government bond. The estimation produces an ordinary least squares (OLS) beta of 1.210 and a 12.95% cost of equity and weighted average cost of capital (WACC). To avoid treating the unusually high 2025 cash flow arising from a working-capital release as recurring, free cash flow to the firm (FCFF) is normalized at the 22.98% historical median margin. The estimated values per share are IDR3,308 under DCF, IDR672.70 under a constant-growth DDM, and IDR1,636 using historical price-to-book value (PBV) and price-to-earnings ratio (PER) multiples. The equal-weight estimate of IDR1,872.22 is 56.7% above the 2025 year-end price of IDR1,195. Differences across the models show that LSIP's value depends not only on cash-generating capacity but also on management's decision to distribute or productively reinvest retained cash.]]>
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