Cement business is a stable and mature industry in Indonesia, signified by the slow growth of demand in the last few years. SMGR stock price has been falling to a recent low, but is there a potential upside? In my valuation using discounted cash flow model, it results in equity value of Rp 7945/share, using 8% risk-free rate due to the rising 10 year government bond yield. From last Friday closing price, the market price has reflected the true value of SMGR equity.
Download the excel file containing the full valuation: