PT Telekomunikasi Indonesia, Tbk

Masukin sekilas ttg telkom

Economic Value Added (EVA) Analysis

Economic Value Added (EVA) is a comprehensive measure of operating
performance. It measures the change in financial worth of an enterprise from one
year to the next. It is a more comprehensive financial measurement tool than net
income (revenues minus expenses) alone, because it includes the cost of the
capital used to generate that income. EVA) is important because it is used as an
indicator of how profitable company projects are and it therefore serves as a
reflection of management performance. EVA itself, is calculated as the diference
between Net Operating Profit After Tax (NOPAT) and the opportunity cost of
invested capital. EVA is calculated as follows :

Net Sales
Operating Expense
= Operating Profit (or earnings before interest and tax, EBIT)
Taxes
= Net Operating Profit After Tax (NOPAT)
Capital Charges (Invested Capital x Cost of Capital)
= EVA

This analysis was conducted using the annual report of PT Telekomunikasi

Indonesia for the year of 2013, 2014, and 2015 and treated using EVA as an
analytical tool to determine the performance of the company.
Firstly we have to calculate NOPAT. The idea behind NOPAT is to get a cash-based
measure of operating performance.

As we can see from the calculation above, the NOPAT is positive and increasing
from year 1 (2013) to year 3 (2015). This means that PT Telkom had an operating
efficiency. NOPAT gives the profit for a company had it been totally unlevered. It
gives a number which interests only the equity holders. EBIT on the other hand is
a number which interests both debt holders and equity holders. So, to calculate
the NOPAT from EBIT we have to remove the benefit of tax shield. After we
calculate the NOPAT, the next step is to calculate the Invested Capital.
The formula fomula for calculating Invested Capital;
Invested Capital = (Total Debt + Total Equity) Short
Term Debt

Invested capital reflects an estimate of the total funds held on behalf of

shareholders, lenders and any other financing sources. From the calculation
above, we can see that the Invested capital value of this company is increasing
every year from 2013 until 2015. So it means that Telkom can manage their
short-term debt and increase their equity by performance of stock and operating
activities. After we calculate Invested Capital, we will calculate the WACC value
by multiply the individual cost of each form of financing by its portion of the
firms capital structure and sum the weighted values. The formula or calculating
Invested

WACC = [(D x rd) + (E x re)]

Where ;
D (Portion of Debt)

Total Debt
x 100
Total Debt +equity

Rd (Cost of debt)

Interest expense
x 100
Total longterm debt

E (Portion of Equity) =

Total equity
x 100
Total debt+ equity

capital ;

From the calculation above, we can see that the WACC is increasing year by year.
After we calculate the WACC, the next step is to calculate EVA. EVA is the
calculation of deduction of NOPAT and capital charges. Capital charges itself, is
from the multiply of Invested capital and WACC. The calculation of PT Telkoms
EVA is as follows;

From the calculation above, we can see that on the year 2013, the EVA has a
positive result, that is Rp 1.928 but the second year (2014) the EVA turned into
negative amount, that is minus Rp 3.600 and so that the third year (2015) the
EVA is negative for minus Rp 15.647. jangan lupa jelasin yg kurang dr 0 besar dr
0 dll.

Pro Forma Income Statement Analysis for the Next Five

Years
Income statement is a companys financial statement that indicates how the
revenue is transfromed into the net income. A pro forma income statement is
planned and prepared in advance to project the future status of the company.
Financial statement for the preceding year and the sales forecast for the next
years are needed to prepare the pro forma statement.
First, we have to calculate PT Telkoms growth each year.

From the calculation above, we can see that the growth of PT Telkom is
increansing from year 1 (2013) to year 3 (2015). And for the next year after
2015, I assume that the growth will be constant for 14,24%. And the tax income,
I assume the tax in Indonesia is 25%. So the pro forma for the next five years are
as follows ;

Note; A = Actual , F = Forecast

The EVA for the year 2004 and 2005 is negative i.e. (633.4) (690.02) which mean
its earningwere less than the cost of capital. Also the trends for the ROI and ROE
are justified by the positive trend of EVA.
The values of the EVA for the consecutive years are decreasing this fluctuating
trend indicateinconsistency in operation efficiency. The EVA and ROE trend is
positive but investing based onthe trend of ROI can mislead the investing
decision. Further the trend of EVA is increasing butthe increase is less significant
as in case of TATA MOTORS.