Shares Valuation of Indonesian Telecommunication Companies using the Discounted Cash Flow Approaching the Relative Valuation Method

Abstract

The company's stock price growth in the telecommunication sector is fluctuating, it is necessary to calculate the intrinsic value of the share price which can provide information to investors. The purpose of this study is to analyze the stock price valuation of telecommunication companies listed on the Indonesia Stock Exchange by reducing discounted cash flow. From this research, it can be seen whether the stock price of the telecommunication company is at a reasonable, cheap, or expensive level. This study uses descriptive quantitative methods with stock price data of telecommunication companies that are members of the Indonesia Stock Exchange. The results of this study show that the stock prices of telecommunication companies in Indonesia are in a reasonable position. And this is very useful information for both investors and issuers in terms of determining the actions to be taken to get good results in their business activities.