Fair Value Estimation of Shares and Tax Liability Implications of the Debt-to-Equity Swap Plan Following the Implementation of Minister of Finance Regulation Number 79 of 2023: A Case Study of PT Sidomulyo Selaras Tbk.

Fachmi Pahala; Fajra Octrina

doi:10.55927/eajmr.v5i7.229

Authors

Fachmi Pahala Telkom University
Fajra Octrina Telkom University

DOI:

https://doi.org/10.55927/eajmr.v5i7.229

Keywords:

debt-to-equity swap, fair value, income tax, tax-purpose valuation, share valuation

Abstract

This study aims to estimate the fair value of PT Sidomulyo Selaras Tbk. This research employs a quantitative, descriptive approach with a single-case study design. Share valuation is conducted using an income approach, specifically the discounted cash flow (DCF) method based on free cash flow to firm (FCFF), in accordance with the valuation object characteristics in Regulation 79/2023. The study uses secondary data from the company's annual reports, interim financial statements, corporate action disclosures, and supporting data for valuation-assumption preparation. The results show that the fair value of SDMU shares after DES is IDR 29 per share, which is lower than the planned conversion price of IDR 55 per share. In terms of financial structure, DES reduces liabilities and increases equity, thereby improving the company's capital structure as reflected in lower leverage ratios and higher current and quick ratios.

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