Valuation November 2016: Wilmar Cahaya Indonesia (CEKA.JK)

The trend of rising CPO price is expected to translate to higher revenue and profit for palm oil processing as well. This valuation is done at late November 2016, and I’m surprised to see a huge upside potential of CEKA.JK stock price. The valuation incorporated 8% risk-free rate due to the rising government bond yield in Indonesia. The stock price is trading cheap, and the valuation is certainly interesting. The drawback lies in the dependency of CEKA to related party to sell it’s product.

Download the excel file containing the full valuation:

ceka-3q16

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Published by Journeyman

A global macro analyst with over four years experience in the financial market, the author began his career as an equity analyst before transitioning to macro research focusing on Emerging Markets at a well-known independent research firm. He read voraciously, spending most of his free time following The Economist magazine and reading topics on finance and self-improvement. When off duty, he works part-time for Getty Images, taking pictures from all over the globe. To date, he has over 1200 pictures over 35 countries being sold through the company.

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