ABSTRACT
This thesis analyses fair prices of four company stocks in the Cement subsector, namely Indocement Tunggal Prakarsa (INTP), Semen Baturaja Tbk (SMBR), Holcim Indonesia Tbk (SMCB), and Semen Indonesia Tbk (SMGR) using the discounted cash flow (DCF) free cash flow to firm (FCFF) method and relative valuation (RV) approaches; price to earnings ratio (PER), and price to book value (PBV). Each approach used three scenarios of optimistic, moderate, and pessimistic. Results of this study indicated that by comparing the stock prices to their intrinsic value of the stock valuation of the DCF-FCFF, the stock market prices as of January 2, 2019, according to all scenarios, showed that INTP, SMCB, and SMBR were overvalued, while SMGR was undervalued. Relative valuation using PER approach in all scenarios indicated overvalued for INTP, SMGR, SMCB, and SMBR. Finally, through PBV approach the relative valuation of INTP and SMGR in optimistic scenario were undervalued, while SMCB and SMBR were overvalued. In the moderate and pessimistic scenarios INTP, SMGR, SMCB, and SMBR were overvalued.
