Toll revenues is a steady stream of cash flow, Jasa Marga has many projects to be completed in 2017 and is expected to generate higher revenue for the next 5 years. But how is the stock price performing after the right issue this year? This valuation incorporated the dilution due to right issue, higher risk-free rate (8% from previously 7%), and update from the 3Q16 report. There is a small upside potential, but if JSMR loss the litigation case, the stock value is expected to decrease by Rp 200/share to Rp 4057/share, which is last Friday’s closing price.
Download the excel file containing the full valuation: