In investing in the capital market, an investor must have good analytical skills to be able to interpret situations and conditions that exist in society. Especially in times of crisis where stock values tend to weaken, investors must be more selective in choosing which stocks have strong enough fundamentals and are good to buy or hold. The point is buy low sell high. So that investors can determine whether the value of the shares to be invested is still cheap enough or too high.

In this pandemic era, companies need to adapt to the development of the digitalization era. On the one hand, digitalization provides benefits due to efficiency, but on the other hand, digitization changes very quickly, so companies must always observe developments so that they can adapt. Quoting an article written by Republika on Saturday 22 Aug 2020 23:09 WIB, Warta gave appreciation to 135 public companies that were packaged in The Most Valuable Company Award 2020: Best 5-Months Stock Performance. "With this good performance, these issuers are expected to contribute maximally to the national economy," said Ihsan, CEO of Warta Ekonomi.

During the crisis period, the industry average stock price will fall to its lowest point in the current year period. However, as a country's economy improves, the stock price of a company will strengthen slowly. It is interesting to question is how the value of the stock will reach its highest point. And what is the fair value of the shares.

To find out the company's valuation on the IDX: Look for a financial report of the issuer of a company listed on the IDX for the last 2 years 2019, and 2020

Related to the good performance and growth and the volatility of the stock price, it is necessary to analyze the relationship between growth and the company's share price, which is generally calculated by analyzing the PE ratio. In addition, it is also necessary to identify whether the company's growth and increase in the PE ratio will be in line with the intrinsic value of the stock when calculated from the fundamental side.

Perform a valuation analysis of the company's stock that you choose, by answering the following questions (include the theory used)

 

Questions:

 

2. 1: Calculate the fair value of the stock based on fundamental analysis using the Free Cash Flow to Equity Discount Model (FCFE) and Price/Earnings ratio (P/E) level analysis.
4. 2: Determine the fair value of each company listed on the Indonesia Stock Exchange that you can use as an example so that it can be used as a reference for investors in making investment decisions
6. 3: Analyze the relationship between the growth of each company and the company's stock price growth using the PE ratio approach
8. 4: Identify whether the company's growth and increase in PE ratio will be in line with the intrinsic value of the stock when calculated from the fundamental side