Jakarta, CNBC Indonesia – Leading shares (blue chip) or large market cap (big cap) residents of the LQ45 index began to strengthen again alias rebound. This happened in the midst of rising Composite Stock Price Index (CSPI) and LQ45 at least in the past month.
According to data from the Indonesia Stock Exchange (IDX), the JCI has appreciated 0.54% in the past week and in a month climbed 1.40% to 6,142,712 in the market close on Thursday (23/9/2021).
The LQ45 index also rose 0.33% in the week and rose 1.80% in the month to 865,510.
The LQ45 index is often used as a reference for high-end investment managers and institutional investors. This is because this index is ‘inhabited’ by 45 issuers with a large market capitalization value and the most liquid in the market.
In addition, investors in this index also highlight the company’s solid fundamentals and bright prospects for the issuers in the future.
Indeed, apart from institutional investors, retail investors also like to collect LQ45 shares. In addition to the points listed above, investors also consider the price of a stock; is stock X, for example, already ‘overpriced’ or overvalued alias overpriced, appropriate, or even ‘cheap’ alias undervalued.
However, as is the case with other IDX indices, not all stocks belonging to the ‘elite club’ LQ45 have ‘cheap’ valuations.
NahSo, what are the LQ45 stocks that are already ‘expensive’?
In this article CNBC Indonesia Research Team will briefly discuss the top 5 LQ45 stocks that have ‘expensive’ valuations.
To see the price ratio CNBC Indonesia Research Team using two methods, namely Price Earning Ratio (PER) and Price to book value (PBV) which are commonly used as fundamental analysis to assess the shares of an issuer.
PER is a valuation method that compares earnings per share with its market price.
The lower the PER, usually the company will also be considered cheaper. For PER, usually by rule of thumb it will be considered cheap if this ratio is below 10 times.
Meanwhile, PBV is a valuation method that compares the book value of an issuer with its market price. The lower the PBV, usually the company will be judged to be cheaper. According to the Rule of Thumb, PBV will be considered cheap if the ratio is below 1 time.
The following is a table of the top 5 LQ45 stocks with valuations that are classified as ‘expensive’ both in terms of PER and PBV.
Top 5 Most ‘Expensive’ LQ45 Stocks
|
They emit |
Kode Ticker |
Last Price (Rp) |
FOR (x) |
PBV (x) |
|
Merdeka Copper Gold |
MDKA |
2,650 |
62.03 |
7.97 |
|
Tower Together |
TBIG |
3,070 |
44.20 |
7.99 |
|
Chandra Asri Petrochemical |
TPIA |
7,200 |
42.85 |
6.05 |
|
Supreme Summarecon |
SMRA |
815 |
37.06 |
1.97 |
|
Karya Sehat Family Partner |
MIKA |
2,380 |
32.26 |
6.89 |
Source: IDX, RTI | Last price per September 23, 2021
According to the data above, gold mining issuers The Saratoga MDKA Group is the most expensive stock in terms of PER, which is 62.03 times above the rule of thumb 10 times.
Meanwhile, in terms of PBV, telecommunication tower issuers which are also owned by the Saratoga TBIG Group are the most expensive, reaching 7.99 times, above the rule of thumb and the industry average PBV (6.14 times). In the second position, the stock with the highest PBV is MDKA, which is 7.97 times, which is above the industry average PBV (4.24 times).
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