Indonesia Conference Directory

This study aims to estimate the fair value of stock prices from technology-based companies listed on NASDAQ, Apple Inc. (AAPL), Alphabet Inc. (GOOG) and Microsoft Corp. (MSFT). This study uses the Discounted Cash Flow (DCF) method with the Free Cash Flow to Firm (FCFF) approach and the Relative Valuation (RV) method with the Price to Book Value (PBV) and Price to Earning Ratio (PER) approaches. Both methods are applied in three scenarios, namely: pessimistic, moderate and optimistic. The results of these two methods are used to provide advice to the relevant parties. Using the DCF - FCFF method, in a pessimistic scenario, investors are advised to sell or not buy all the shares because the stock is all overvalued. In the moderate scenario, investors are advised to sell or not buy MSFT shares because it is overvalued and buy shares of AAPL and GOOG because they are undervalued. In the optimistic scenario, investors are advised to buy the shares of the three companies because all shares are in an undervalued condition. Using the RV - PER approach, in all scenarios, investors are advised to buy AAPL shares. While the RV - PBV approach, specifically in the pessimistic scenario, is recommended to buy MSFT shares and buy GOOG shares in two other scenarios. Future studies are expected to minimize the calculation variables that are subjective in nature and do calculations with other methods to produce more accurate information for investors and companies.