Financial Perfomance Review Between Two Mining Company in Indonesia
FINANCIAL PERFORMANCE REVIEW AND ESTIMATING COMPANY
VALUE OF PT ANEKA TAMBANG (PERSERO) TBK IN COMPARISON WITH
OTHER LOCAL MINING COMPANY: PT VALE INDONESIA TBK
Muhammad Naufal Aflah and Ana Noveria
School of Business and Management
Institut Teknologi Bandung, Indonesia naufal.aflah@sbm-itb.ac.id Abstract: The researcher will try to analyze about the past, current, and future financial condition and make a valuation about firm’s value of two companies that dominate the mining sector of industry in Indonesia which are PT Aneka Tambang (Persero) Tbk (ANTAM) and PT Vale Indonesia Tbk, formerly PT International Nickel
Indonesia Tbk (VALE). To assess the financial performance of PT Aneka Tambang (Persero) Tbk, researcher will use several methods which are time-series analysis (Compound Annual Growth Rate), cross-section analysis, common-size analysis, and DuPont Analysis (ROA and ROE). Then make a valuation of the firm’s value using three valuation approach which are asset based method, market approach, and income approach better known as discounted cash flow approach. Based on the results, ANTAM has better performance in their net working capital through total current assets, current liabilities, retained earnings, and share capital. Nevertheless, VALE has good capability in attract the investors and controlling their non-current assets, non-current liabilities, and additional paid in capital. In overall, ANTAM has better financial performance than VALE in terms of CAGR comparison, cross-section analysis, and DuPont system of analysis. Whereas, both of ANTAM and VALE had been experienced a not significant difference in terms of financial ratios and common-size financial statements.
The valuation both of PT Aneka Tambang (Persero) Tbk and PT Vale Indonesia Tbk used three approaches. The asset based method approach indicates that PT Aneka Tambang (Persero) Tbk has experienced undervalue and
PT Vale Indonesia Tbk has experienced overvalue.
VALUE OF PT ANEKA TAMBANG (PERSERO) TBK IN COMPARISON WITH
OTHER LOCAL MINING COMPANY: PT VALE INDONESIA TBK
Muhammad Naufal Aflah and Ana Noveria
School of Business and Management
Institut Teknologi Bandung, Indonesia naufal.aflah@sbm-itb.ac.id Abstract: The researcher will try to analyze about the past, current, and future financial condition and make a valuation about firm’s value of two companies that dominate the mining sector of industry in Indonesia which are PT Aneka Tambang (Persero) Tbk (ANTAM) and PT Vale Indonesia Tbk, formerly PT International Nickel
Indonesia Tbk (VALE). To assess the financial performance of PT Aneka Tambang (Persero) Tbk, researcher will use several methods which are time-series analysis (Compound Annual Growth Rate), cross-section analysis, common-size analysis, and DuPont Analysis (ROA and ROE). Then make a valuation of the firm’s value using three valuation approach which are asset based method, market approach, and income approach better known as discounted cash flow approach. Based on the results, ANTAM has better performance in their net working capital through total current assets, current liabilities, retained earnings, and share capital. Nevertheless, VALE has good capability in attract the investors and controlling their non-current assets, non-current liabilities, and additional paid in capital. In overall, ANTAM has better financial performance than VALE in terms of CAGR comparison, cross-section analysis, and DuPont system of analysis. Whereas, both of ANTAM and VALE had been experienced a not significant difference in terms of financial ratios and common-size financial statements.
The valuation both of PT Aneka Tambang (Persero) Tbk and PT Vale Indonesia Tbk used three approaches. The asset based method approach indicates that PT Aneka Tambang (Persero) Tbk has experienced undervalue and
PT Vale Indonesia Tbk has experienced overvalue.
References: Badan Pusat Statistik (BPS). 2013. Berita Resmi Statistik. Retrieved from http://www.bps.go.id/brs_file/pdb_05feb13.pdf Bank Indonesia. 2013. Average Inflation Rate: July 2012 – July 2013. Retrieved from http://www.bi.go.id/biweb/Templates/Moneter/Default_Inflasi_EN.aspx?NRMODE=Published&NRN Gitman L.J. 2009. Principles of Managerial Finance 12 Edition, Pearson P Hitchner, J.R Indonesia Bond Pricing Agency (IBPA). 2013. Indonesia Government Securities Yield Curve and Government Bond Indices (IGSYC) Ross, Stephen A. 2010. Corporate Finance 9 Edition. McGrawHill White, Gerald I