THE VALUATION OF INITIAL SHARE PRICE USING THE FREE CASH FLOW TO FIRM METHOD AND THE REAL OPTION METHOD IN INDONESIA STOCK EXCHANGE
Abstract: The purposes
of this study
were to determine
fair share value,
to analyze the
factors that influence undervalue and overvalue, and to
determine the best valuation method. This study made valuation using real options
method and free cash flow to firm
method. The results of partial
logistic regression on Free Cash Flow
to Firm showed
that tenor variable
and equity variable
had positive and
significant effects, while dummy variable had a negative and
significant effect. In the real option model, tenor variable and implied volatility variable
had positive and
significant effects, while
sheets of share
variable had a
negative and significant effect
Author: Adhy Listya Paramitha,
Sri Hartoyo, Nur Ahmad Maulana
Journal Code: jpmanajemengg140131
