VALUATION IN MERGER AND ACQUISITION: A CASE STUDY OF TWO MAJOR DEPARTMENT STORES IN INDONESIA

CAHYADI, HADI and Calvin, Brian and Wijaya, Henryanto (2015) VALUATION IN MERGER AND ACQUISITION: A CASE STUDY OF TWO MAJOR DEPARTMENT STORES IN INDONESIA. Karya Ilmiah Dosen. pp. 1-59. ISSN 978-9799-234-53-7

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Abstract

The potential of the Indonesian retail market in the medium-to-long term remains substantial despite an expected flattening of growth in national retail turnover this year, consistent with the slowdown in the Indonesian economy. Indonesia is expected to have a positive future of national growth in retail industry due to the rising incomes which are expected to increase spending in retail items, increasing middle class population which is expected to boost consumption, high level of optimism among Indonesian consumers based on the Indonesian Consumer Confidence Index, and therapid growth in commercial property which supports the development of the retail sector. The Association of Indonesian Retailer (APRINDO) expects a maximum 10% sales growth in the retail sector in the coming years.This research examined two famous Indonesian companies, PT Matahari Department Store Tbk. (LPPF or Matahari) and PT Ramayana Lestari Sentosa Tbk. (RALS or Ramayana), which are engaged in department store chains in Indonesia. The financial analysis covered both companies' financial projections of the statement of comprehensive income, financial position, and cash flow. A valuation study of both companies was performed with the Discounted Cash Flow and Relative Valuation method. Our DCF and Relative Valuation have resulted the indicative fair value of LPPF and RALS areRp. 6.029 per share and Rp. 529 per share, respectively.

Item Type: Article
Subjects: Karya Ilmiah Dosen > Fakultas Ekonomi
Divisions: Fakultas Ekonomi > Akuntansi
Fakultas Ekonomi > Manajemen
Depositing User: Puskom untar untar
Date Deposited: 10 Apr 2017 08:21
Last Modified: 10 Apr 2017 08:21
URI: http://repository.untar.ac.id/id/eprint/370

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