Michael Suseno, Subiakto Soekarno
Institute Teknologi Bandung
Abstract: PT. Krakatau Steel (PTKS), an Indonesian steel corporation, is currently facing a number of obstacles, such as significant debt, fierce competition from less expensive imported steel, and challenges in implementing contemporary production methodologies. Although PTKS has demonstrated enhanced net profits and a favorable return on equity (ROE), its stock performance is average in comparison to its industry counterparts. In order to maintain competitiveness within the worldwide steel sector, it is imperative that PTKS undertake measures to address its outstanding debt, decrease production expenditures, and enhance operational efficacy. Upon conducting an examination of the financial statements and stock valuation of the organization, it has been observed athat there exist certain concerns pertaining to liquidity and management of long-term debt in comparison to other companies operating in the same industry. The existence of debt has a detrimental effect on financial metrics such as EV/EBITDA and Discounted Cash Flow, despite being frequently underestimated. The research emphasizes the significance of adopting measures to augment the financial performance of PTKS. This involves prioritizing debt management, minimizing costs, and embracing advanced technologies to attain enduring prosperity.
Keywords: Company financial performance; valuation; discounted cash flow; free cash flow