Abstract
This study aims to estimate the fair value of equity per share and to analyze undervalued or overvalued value of the company PT. Bank BRI Syariah Tbk. Result on this study combine market approach, book value approach and discount of future cash flow approach, so it can deliver comprehensive result. On the other side, this study or valuation specialize on financial industry due to uniqueness and complexity of the industry. PT. Bnk BRI Syariah Tbk was chosen, because of the plan ot the ministry of state-owned enterprises of the Republic of Indonesia to merge 3 sharia banks such as PT Bank BRI Syariah Tbk, PT Bank Syariah Mandiri, and PT Bank BNI Syariah. Only, PT Bank BRI Syariah is public company. This research is a descriptive analysis, the data and information used are secondary data from PT Bank BRI Syariah Tbk through its annual report, while other data used come from data and reports from other supporting institutions. This study uses three methods to value the share, free cash flow to equity, relative valuation, and abnormal earning. The conclusion is fair value of PT Bank BRI Syariah Tbk is IDR 482.47, so the value is undervalued.
Highlights
The forming Merging, Shariah Bank State-Owned Enterprises, is a strategic masterplan from the State-Owned Enterprises Minister to develop efficiency, synergy, and increase value-added State-Owned Enterprises in Banking and Financial Service Sector
The Merging process is really interesting and unique because, in the merging process Shariahs Banking, PT Bank BRISyariah (Tbk), PT Bank Syariah Mandiri Tbk and PT Bank BNI Syariah are involved, but only PT Bank Syariah that has been listed on Indonesian Stock Exchange (IDX)
If we look at the amount of total assets and total equity, it could be that Bank Syariah Mandiri as the leader which has the largest total assets and total equity becomes this combined Islamic bank entity
Summary
The forming Merging, Shariah Bank State-Owned Enterprises, is a strategic masterplan from the State-Owned Enterprises Minister to develop efficiency, synergy, and increase value-added State-Owned Enterprises in Banking and Financial Service Sector. This syariah bank merger is intended to open up wider funding options in Indonesia. This merger will be carried out in the first quarter of 2021. Because only one of the Islamic banks has become a public company and is listed on the stock exchange, namely PT Bank BRISyariah (BRIS), it is possible that BRIS will become the leader new entity of this combined Syariah /Islamic bank. The following is presented total asset and equity of each sharia bank on table 1
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