ABSTRACT
Investment in the pulp and paper sector is still promising due to high state revenue. Stock investment requires a stock valuation analysis to estimate fundamental data-based intrinsic value or fair price for stock. This study used a discounted cash flow (DCF) – free cash flow to firm (FCFF) method with price-to-book value (PBV) and price-earnings ratio (PER) approaches. Three scenarios, namely pessimistic, moderated, and optimistic, were used in historical data from 2014 to 2018 as the basis for yearly projections from 2019 to 2023. The result using DCF method revealed that INKP’s, FASW’s, and TKIM’s fair price was in overvalued conditions. The result using relative valuation (RV) revealed that there was a significant difference between market value and fair value using FCFF and RV methods with PER approach. However, there was no significant difference between market value and fair value using RV method with PBV approach.
