Evaluation of PT Rig Tenders Indonesia Tbk.

Yulius Waldi Hendrata, Sukmawati Sukamulja, Prof., Dr., M.M.

2024 | Tesis | S2 MANAJEMEN (MM) JAKARTA

This thesis focuses on the valuation of PT Rig Tenders Indonesia Tbk (RIGS), a key player in the Indonesian shipping industry, particularly in coal and nickel transportation. The purpose of this research is to assess the company’s intrinsic value using Discounted Cash Flow (DCF) and Relative Valuation methodologies while identifying the potential risks through Sensitivity Analysis. The research examines the internal strengths of RIGS, such as its strategic backing from the KSA Group, which provides access to a large fleet of vessels and enhances operational efficiency. However, challenges such as dependence on volatile commodity markets, fuel price fluctuations, and increasing regulatory costs are key concerns for the company’s long-term sustainability.

The DCF analysis reveals that RIGS' intrinsic value is higher than its current market price, suggesting that the company may be undervalued by the market. Similarly, the Relative Valuation results indicate that RIGS is priced lower compared to its peers in terms of key multiples like EV/EBITDA and P/E ratios, offering potential opportunities for value investors. However, the Sensitivity Analysis highlights significant risks related to changes in the risk-free rate, growth assumptions, and market volatility, which could adversely impact the company’s future cash flows.

This study concludes that while RIGS is currently undervalued, its future performance is highly sensitive to external market conditions, and careful risk management is essential to realizing its full potential. The findings contribute to a deeper understanding of the valuation challenges faced by companies in the shipping sector and provide insights into potential strategies for mitigating risks in a volatile market environment. 

This thesis focuses on the valuation of PT Rig Tenders Indonesia Tbk (RIGS), a key player in the Indonesian shipping industry, particularly in coal and nickel transportation. The purpose of this research is to assess the company’s intrinsic value using Discounted Cash Flow (DCF) and Relative Valuation methodologies while identifying the potential risks through Sensitivity Analysis. The research examines the internal strengths of RIGS, such as its strategic backing from the KSA Group, which provides access to a large fleet of vessels and enhances operational efficiency. However, challenges such as dependence on volatile commodity markets, fuel price fluctuations, and increasing regulatory costs are key concerns for the company’s long-term sustainability.

The DCF analysis reveals that RIGS' intrinsic value is higher than its current market price, suggesting that the company may be undervalued by the market. Similarly, the Relative Valuation results indicate that RIGS is priced lower compared to its peers in terms of key multiples like EV/EBITDA and P/E ratios, offering potential opportunities for value investors. However, the Sensitivity Analysis highlights significant risks related to changes in the risk-free rate, growth assumptions, and market volatility, which could adversely impact the company’s future cash flows.

This study concludes that while RIGS is currently undervalued, its future performance is highly sensitive to external market conditions, and careful risk management is essential to realizing its full potential. The findings contribute to a deeper understanding of the valuation challenges faced by companies in the shipping sector and provide insights into potential strategies for mitigating risks in a volatile market environment. 

Kata Kunci : : Discounted Cash Flow (DCF), Relative Valuation, Sensitivity Analysis, Shipping Industry, Coal Transportation, Nickel Transportation, Commodity Market Volatility, Market Undervaluation.