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: