Introduction to Business Valuation : KJPP YANUAR BEY & REKAN Introduction to Business Valuation : Scope & Methodologies Source : - IVAN TEGUH KHRISTIAN

MISCONCEPTION OF VALUATION Myth 1 : A Valuation in an Objective to search for “True” Value Truth : All valuation are biassed, the only questions are “how much” and in which direction. Myth 2 : A good valuation provides a precise estimate of value Truth : There are no precise valuations Myth 3 : The more quantitative a model, the better the valuation Truth : One’s understanding of a valuation model is inversely proportional to the number of inputs required for the model. Truth : Simpler valuation models do much better than complex ones. Source : Aswath Damodaran IVAN TEGUH KHRISTIAN

Definition Nilai : Suatu opini dari manfaat ekonomi atas kepemilikan aset atau harga yang paling mungkin dibayarkan untuk suatu aset dalam pertukaran. Sehingga nilai bukan merupakan fakta. Harga : Sejumlah uang yang diminta, ditawarkan atau dibayangkan untuk suatu aset. Karena kemampuan keuangan, motivasi atau kepentingan khusus dari pembeli atau penjual , harga yang dibayarkan mungkin berbeda dengan nilai dari aset tersebut berdasarkan anggapan pihak lain. Source : KEPI & SPI 2013 IVAN TEGUH KHRISTIAN

Common Uses of Business Valuation Tax Estate/Gift Buy/Sell Agreements Bankruptcy and Litigation Liquidation or Reorganization Patent Infringement Partner Disputes Economic Damages Financial Reporting Purchase Price Allocation, Impairment Testing and Stock Options and Grants, etc. Strategic Planning/Transaction Value Enhancement Business Plan/Capital Raising Strategic Direction, Spin-Offs, Carve Outs, etc. Acquisitions, Due Diligence Employee Stock Ownership Plan (ESOP) . Solvency and Fairness Opinions Damage Assessment Dissenting Shareholder Actions Marital Dissolutions Source : IVAN TEGUH KHRISTIAN

Valuation Methodology Pendekatan Pasar (Market Approach) Pendekatan pasar membandingkan perusahaan yang dinilai dengan perusahaan sebanding, kepentingan kepemilikan perusahaan dan surat berharga yang dijualbelikan di pasar serta transaksi relevan atas saham perusahaan yang sebanding, transaksi sebelumnya atau penawaran atas komponen perusahaan juga dapat merupakan indikasi nilai. Metode : 1. pembanding perusahan tercatat di bursa efek 2. Pembanding merger dan akuisisi 3. transaksi sebelummnya 4. Direct data method Pendekatan Pendapatan (Income Approach) Pendekatan Pendapatan dapat digunakan untuk memperkirakan nilai dengan mengantisipasi dan mengkuantifikasi kemampuan obyek penilaian dalam menghasilkan imbal balik (return) yang akan diterima di masa mendatang. Metode: 1. Metode Diskonto Arus Kas (Discounted Cash Flow Method) 2. Metode Kapitalisasi (Capitalization of Income Method) Pendekatan Aset Penilai yang menggunakan pendekatan aset, dalam penugasan profesional wajib memiliki keahlian dalam bidang penilaian propertid an Penilaian Bisnis. Metode: 1. Metode Adjusted Net Aseet Method (ANAM), Adjusted Book Value Method (ABVM), Net Asset Valuation Method (NAVM), Assets Accumulation Method (AAM) 2. Metode Kapitalisasi Kelebihan Pendapatan (KKP)/ Excess Earning Method (EEM) . Source : KEPI & SPI 2013 IVAN TEGUH KHRISTIAN

Methodology advantages and Disadvantages (Market Approach) Advantages Relative valuation is much more likely to reflect market perceptions and moods Relative valuation generally requires less information than discounted cash flow valuation Disadvantages Relative valuation may require less information in the way in which most analysts and portfolio managers use it – Hidden implicit assumption (Income Approach Approach) Advantages Since DCF valuation is based upon an asset’s fundamentals, it should be less exposed to market moods and perceptions. Good for investors that buy businesses, rather than stocks Disadvantages Since it is an attempt to estimate intrinsic value, it requires far more inputs and information than other valuation approaches These inputs and information are not only noisy, but also can be manipulated--assumption (Asset Approach) “Need Asset Valuation and suitable for asset dominated company Source : stern-edu IVAN TEGUH KHRISTIAN

Object to Valuate Firm Valuation : Value the entire business Equity valuation : Value just the equity claim in the business Source : Aswath Damodaran IVAN TEGUH KHRISTIAN

Object to Valuate Source : Aswath Damodaran IVAN TEGUH KHRISTIAN

Object to Valuate Source : Aswath Damodaran IVAN TEGUH KHRISTIAN

BUSINESS VALUATION Thank You KJPP YANUAR BEY & REKAN Source : - IVAN TEGUH KHRISTIAN