The Valuation of initial share price using the free cash flow to firm method and the real option method in Indonesia stock exchange

The purposes of this study were to determine fair share value, to analyze the factors that influence undervalue and overvalue, and to determine the best valuation method. This study made valuation using real options method and free cash flow to firm method. The results of partial logistic regression on Free Cash Flow to Firm showed that tenor variable and equity variable had positive and significant effects, while dummy variable had a negative and significant effect. In the real option model, tenor variable and implied volatility variable had positive and significant effects, while sheets of share variable had a negative and significant effect

ADHY LISTYA PARAMITHA ; SRI HARTOYO; NUR AHMAD MAULANA Unknown Universitas Kristen Petra English eDIMENSI Journal Unknown JMK, VOL. 16, NO. 1, MARET 2014, 9–16; Adhy Listya Paramitha (NA00405119), Sri Hartoyo (NA00405120) dan Nur Ahmad Maulana (NA00405121) Unknown

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