Risk factor
Very high price volatility
Profitability factor
Greatly overvalued vs peers
About
Headquartered in Jakarta Selatan, Indonesia, PT Magna Investama Mandiri Tbk provides a diverse array of financial services, including consumer lending, leasing, and factoring, to individuals and corporate clients across the nation. A cornerstone of its business lies in offering financing solutions primarily for pre-owned vehicles. The company operates an extensive network of 29 branches and representative offices strategically located throughout Java, Sumatera, and Borneo. Originally established in 1984 as PT Magna Finance Tbk, the firm officially adopted its present name, PT Magna Investama Mandiri Tbk, in November 2017.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is overvalued on EV/EBITDA.