ABSTRACT
This study aims to determine intrinsic value of stock in companies listed on the Indonesia Stock Exchange in animal feed subsector in 2018 with the approach of free cash flow to firm (FCFF) and relative valuation based on price earnings ratio (PER) and price book value (PBV). The discounted cash flow (DCF)-FCFF valuation results show that the Charoen Phokpand Indonesia (CPIN) in pessimistic and moderate scenarios is overvalued, while in optimistic scenarios it is undervalued. Japfa Comfeed Indonesia (JPFA) shares are undervalued in all scenarios, and Malindo Feedmill (MAIN) shares are in overvalued condition in all scenarios. The PER valuation results show that CPIN shares in pessimistic and moderate scenarios are undervalued, while in optimistic scenarios, they are overvalued. JPFA and MAIN stocks in all scenarios are overvalued. The PBV valuation results show that CPIN’s stock in the pessimistic scenario is undervalued, while in the moderate and optimistic scenarios are overvalued condition. JPFA and MAIN stocks in all scenarios are overvalued.
