International Journal of Advanced Research in Management and Social Sciences

  • Year: 2018
  • Volume: 7
  • Issue: 5

Comparison analysis between intrinsic value and market price of telecommunication company in indonesia stock exchange

  • Author:
  • Siti Rahmi Utami1, Vivian Limas2, Fauzia Ulfa3, Michael Wijaya4
  • Total Page Count: 13
  • DOI:
  • Page Number: 1 to 13

1Green Economy Study Program, Faculty of Green Economy and Digital Communication, Surya University, Indonesia

2Green Economy Study Program, Faculty of Green Economy and Digital Communication, Surya University, Indonesia

3Green Economy Study Program, Faculty of Green Economy and Digital Communication, Surya University, Indonesia

4Green Economy Study Program, Faculty of Green Economy and Digital Communication, Surya University, Indonesia

Abstract

The objectives of the research are to comparethe intrinsic value and stock price of telecommunications and information company in Indonesia. The sample of this study is PT TLKM as it is one of the largest providers of telecommunication services companies in Indonesia. We use descriptive and quantitative analysis to analyze the difference between its intrinsic value and stock price. The data is the monthly data from the period March 2013 to July 2016. The Intrinsic value of PT. Telkom in 2013, 2014, and 2016 are less than the market price while Intrinsic value of PT. Telkom in 2015 is more than the market price. These imply that stock of PT. Telkom are overvalued in 2013, 2014, and 2016, whereas stock is undervalued in 2015.

Keywords

Intrinsic Value, Stock Price, Market Capitalization Rate, Capital Asset Pricing Model