##plugins.themes.bootstrap3.article.main##

This research is focused on determining the intrinsic fair value of the P.T. Bank Muamalat Tbk (BMI/Bank) for pre-IPO initial offering price. The research begins with a banking industries analysis where the author will look for industry average ratios data. This analysis helps the author to summarize the company's internal & external position. Author differentiates the banking industries into two industries conventional bank and Islamic Sharia bank. Author will calculate the average ratios from the two industries, which is Commercial Conventional Bank (BUK) and Islamic commercial Bank & Islamic Business Unit (BUS & UUS), and will use them as multiples ratio. To determine the fair value of this research author uses two methods approach the relative and absolute valuation methods. On the Absolute valuation method, the author uses the Discounted Cash Flow (DCF) method with Free Cash Flow to Equity (FCFE) approach specifically for banks by looking at the regulatory capital with a projection of 5 years. While on the relative valuation method, the author uses three perspective approaches: earnings, book value, and revenue perspective. Multiples ratios representing the perspective are Price Earnings Ratio (PER), Price to Book Value (PBV), Price to Sales (P/S), and Price to Operating Profit (P/OPPS) approaches. To determine the Bank fair value author, differentiate the calculation involving negative earnings and see the effect of it. The data used in this research comes from historical data during the 2017 to 2022 period, also including the last quarter's performance in March 2023. The result of the relative valuation method of the three perspectives gives the result of an intrinsic fair price with a range of IDR 103.94 – IDR 168.18. Meanwhile as for absolute method, author use discounted cash flow method with free cash flow to equity for a financial firm, and it gives a result of intrinsic share price with a range IDR 152.84 – IDR 197.27. Thus, the average intrinsic fair price using the two valuation methods is IDR 149.54 – IDR 182.97. In the end, the result of this research is to find the real fair price based on academic study and could be used as a reference in the initial stock pricing pre-IPO plan of the Bank in 2023.

Downloads

Download data is not yet available.

References

  1. Badan Pusat Statistik (2022, December). Statistical Yearbook of Indonesia 2022. https://www.bps.go.id/publication/2022/02/25/0a2afea4fab72a5d052cb315/statistik-indonesia-2022.html.
     Google Scholar
  2. Badan Pusat Statistik (2023, February). Population Growth Rate (Percent), 2015-2022.
     Google Scholar
  3. https://www.bps.go.id/indicator/12/1976/1/laju-pertumbuhan-penduduk.html.
     Google Scholar
  4. Bank Indonesia (2022, December). Sharia Economic & Financial Review 2022.
     Google Scholar
  5. https://www.bi.go.id/en/publikasi/laporan/Documents/Sharia-Economic-and-Financial-Review-2022.pdf.
     Google Scholar
  6. Bank Indonesia (2022, December). Economic Report on Indonesia 2022. https://www.bi.go.id/id/publikasi/laporan/Pages/LPI_2022.aspx.
     Google Scholar
  7. Damodaran, A. (2012). Investment Valuation tools and techniques for determining the value of any asset. University edition. John Wiley & Sons, Inc.
     Google Scholar
  8. Damodaran, A. (2014). Applied corporate finance. 4th ed. Stern School of Business, NYU.
     Google Scholar
  9. Humas, B. (2023). BPKH Declares Readiness of Hajj Funding in 1444H/ 2023 M. https://bpkh.go.id/bpkh-nyatakan-kesiapan-pendanaan-haji-tahun-2023/.
     Google Scholar
  10. Jumran A. & Hendrawan R. (2021). Stock Valuation using discounted cash flow method with free cash flow to equity and relative valuation approaches on state owned bank listed on IDX for 2021 to 2025 period projection. International Journal of Sience and Management Studies (IJSMS), 4(4).
     Google Scholar
  11. Michael A. Hitt, R. D. (2019). Strategic management competitiveness & globalization. Cengage Learning.
     Google Scholar
  12. Muamalat, B. (2022). Annual Report. Bank Muamalat.
     Google Scholar
  13. Roosenboom, P. (2012). Valuing and pricing IPOs. Journal of Banking & Finance 36 (2012) 1653-1664.
     Google Scholar
  14. RTI Analytics (2023, May 1). https://analytics.rti.co.id/.
     Google Scholar
  15. Sari A. (2021). Analisa Kinerja Keuangan Bank Syariah (Studi Kasus, PT. Bank Syariah Mandiri, Tbk Tahun 2015-2017 [Analysis of Financial Performance of Islamic Banks (Case Study, PT. Bank Syariah Mandiri, Tbk 2015-2017]. Jurnal Pendidikan dan Ekonomi, 8 (5) 2019.
     Google Scholar
  16. Stanko, B., & Zeller, T. (1994). Financial ratios for the commercial banking industry: do they measure what you think? Journal of Business and Economic Perspectives, XX (1), 1994.
     Google Scholar
  17. Stockbit (2023, May 1). https://stockbit.com/stream.
     Google Scholar
  18. Sukamulja, P. D. (2021). Manajemen Keuangan Korporat [Corporate Financial Management]. In Teori, Analisis, dan Aplikasi Dalam Melakukan Investasi (pp. 310-311). Yogyakarta: Penerbit ANDI dengan BPFE.
     Google Scholar
  19. Suprayitno G. & Sinansari P. (2019). Analysis of Indonesia Banking performance. 3rd Asia Pasific International Conference of Management and Business Science (AICMBS 2019). Advance in Economics, Business and Management Research, 135.
     Google Scholar
  20. Yahoo! Finance (2023 May 1). https://finance.yahoo.com/.
     Google Scholar
  21. Zutter, C. J., & Smart, S. B. (2020). Principles of Managerial Finance (The Person Series in Finance). Fifteenth Edition Global Edition. Pearson.
     Google Scholar