Proceedings of 7th Asia-Pacific Business Research Conference
25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0
Prospect Analysis of PT Tiga Pilar Sejahtera Food Tbk.
(Study of Indonesian Fast Manufacturing Consumer Good
Company)
Agnes Maria, Thea Phandu and Subiakto Soekarno
Indonesia is the forth most populous country in the world. With its fast growing economic in
these past years and rapid growing middle-class, domestic consumption becomes
Indonesia’s competitive privilege, which contribute for about 56.4% of Indonesian GDP. The
biggest challenge to invest in this fast manufacturing consumer good sector is the premium
stock price standard, which instead makes PT Tiga Pilar Sejatera Food Tbk looks really
alluring. PT Tiga Pilar Sejahtera Food Tbk is one of the new players in the industry, which
its stock price has not been premium comparing to others. Proven by its P/E ratio that still
below the industrial average. But despite the un-premium price, PT Tiga Pilar showed a
very attractive stable uptrend growth, which even seems not affected when the market is in
a downtrend. In 2013, this company could give their investors for about 99% for 1 year
return, 5 times higher than the overall Indonesian market.
From those triggers, author wants to know the prospect of PT Tiga Pilar Sejahtera in future
to decide whether today is the right time to follow the train and invest in PT Tiga Pilar
Sejahtera Food or not. This research is based on 3 major valuation theories, which is the
Relative Valuation with Price Earnings Ratio (PER), Asset-Based Valuation, and
Discounted Cash Flow Method.
Eventually, this research manifests that in fact PT Tiga Pilar Sejahtera Food’s stock price is
already overvalued. But in accordance to the industry average, this company’s stock price
is still relatively down-market. With a good prospect in future and affordable stock price,
author figures that today is one of the best times to start investing in this company.
Keywords: Future Prospect, Valuation, Discounted Cash Flow, Price Earnings
Ratio, Indonesian FMCG, Asset-based Valuation
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Agnes Maria, Thea Phandu and Subiakto Soekarno, School of Business and Management, Institute
Technology Bandung, Indonesia, email: agnes.maria@sbm-itb.ac.id