ABSTRACT
The objective of this research is to forecast the fairness of stock price of food-and-beverages subsector companies listed in the Indonesian Stock Exchange. This research uses the Discounted Cash Flow (DCF) method with the Free Cash Flow to Firm (FCFF) approach and Calculate Relative Valuation method with Price to Book Value (PBV) and Price to Earnings Ratio (PER) approaches. This research uses three scenarios, namely pessimistic, moderate, and optimistic. For the needs of the next five years’ projections, from 2018 to 2022, data processed from historical financial performance data from the period 2013 to 2017 is used. The results, using the DCF method in the pessimistic scenario, showed that INDF, ICBP, and MYOR stock prices are overvalued; using the DCF in the moderate and optimistic scenario showed that INDF, ICBP, and MYOR stock price are undervalued. Furthermore, using the Relative Valuation method with the PER approach, at the pessimistic scenario INDF and ICBP are at fair value but MYOR is overvalued; in the moderate and optimistic scenario, INDF was fair valued, and ICBP and MYOR are overvalued. Using PBV at pesimistic, moderate, and optimistic scenarios, all the result for INDF, ICBP and MYOR are undervalued.
