PAHAM SAHAM | #GhibahinSaham eps 1

Summary

In this video, the speaker introduces the 'Gibahin Saham Series,' a deep dive into stock investing. They discuss how to evaluate stocks through three key aspects: understanding the business model, assessing the company's growth potential, and determining whether it's the right time to buy based on valuation. Using real-life examples like Indofood's stock, they explain how to analyze financial statements, key operational metrics, and valuation ratios such as P/E. The goal is to help viewers ask better questions and make informed decisions when investing in stocks.

Takeaways

• 😀 Understanding stocks requires diving into a company's business model to see how they make money and what costs they incur.
• 😀 Investing in stocks is about asking better questions—knowing how to analyze a company's financials helps you avoid wrong answers.
• 😀 Before diving into specific stock analysis, it's important to understand the company’s revenue, cost of goods sold (COGS), and operating expenses.
• 😀 The first step to investing in stocks is opening a brokerage account and purchasing your first share, as discussed in prior videos.
• 😀 Look at a company's growth prospects, or key performance indicators (KPIs), to gauge its future potential. KPIs may vary by industry but should be considered for stock evaluation.
• 😀 For consumer product companies like Indofood (ICBP), key metrics include price, volume, and EBIT margin to assess performance and future growth.
• 😀 Valuation matters when determining whether it's the right time to buy a stock. A good company with strong growth potential might still be overpriced.
• 😀 Use valuation ratios like P/E (price-to-earnings) ratio for stable companies, and EV/EBITDA for companies with fluctuating profits to assess stock prices.
• 😀 Always examine the detailed financial notes and reports of a company, as this gives deeper insights into their operational structure and financial health.
• 😀 Stock analysis involves not only examining past performance but also forecasting the company's future in terms of profitability and growth potential.
• 😀 The 'Gibahin Saham Series' aims to teach viewers how to analyze stocks from an investor's perspective, helping them make informed decisions in the stock market.

Q & A

What is the Gibahin Saham series about?

The Gibahin Saham series is a fun and informative way to discuss stocks. Instead of gossiping about people, the series focuses on analyzing stocks and learning how to evaluate companies from an investor’s perspective. The aim is to ask better questions and help viewers understand the stock market more deeply.

Why is it important to understand a company's business model when investing in stocks?

Understanding a company's business model is crucial because it helps investors know how the company makes money. It allows you to evaluate what products or services the company sells, how it generates revenue, and what costs it incurs to do so. This knowledge forms the foundation for assessing whether the company is a sound investment.

How do you analyze the business model of a company?

To analyze a company’s business model, you need to look at its revenue sources and costs. For example, in the case of Indofood (ICBP), you would examine the company's financial statements to see where its revenue comes from (such as Indomie noodles) and what its cost of goods sold (COGS) is, like the cost of raw materials such as wheat or spices.

What are the three key operational metrics to evaluate a company’s growth?

The three key operational metrics to evaluate growth are: 1) Price (can the company increase its prices without losing customers?), 2) Volume (can the company sell more products or enter new markets?), and 3) EBIT Margin (how much profit does the company make after operational costs?). These metrics give insights into how a company is positioned for future growth.

How do you calculate EBIT margin, and why is it important?

EBIT margin is calculated by dividing the company’s earnings before interest and taxes (EBIT) by its total revenue. It is an important indicator because it shows how efficiently a company is operating—specifically, how much profit it retains from its revenues after covering operational expenses.

Why is understanding a company’s growth prospects crucial for stock analysis?

Understanding a company’s growth prospects is essential because investors are purchasing stocks based on future potential, not just current performance. By assessing factors like price increases, volume growth, and profitability (EBIT margin), investors can determine whether the company is likely to grow and deliver a strong return on investment.

What does valuation mean in the context of stock investing?

Valuation refers to determining whether a stock is priced fairly relative to its current performance and future prospects. It helps investors assess whether the stock is a good deal at its current price. Key valuation metrics include the Price-to-Earnings (P/E) ratio and EV/EBITDA ratio.

How do you determine if a stock is cheap or overpriced?

To determine if a stock is cheap or overpriced, investors often use the Price-to-Earnings (P/E) ratio for stable companies or the EV/EBITDA ratio for companies with inconsistent earnings. These ratios help compare the stock price to the company’s earnings or overall value, giving a sense of whether the stock is fairly priced.

Why do some companies require the use of EV/EBITDA instead of P/E for valuation?

The EV/EBITDA ratio is often used for companies that experience irregular earnings, where profits may fluctuate significantly. This ratio gives a clearer picture of the company’s value by excluding interest, taxes, and depreciation, which can vary from company to company. It’s particularly useful for assessing companies with unpredictable profit patterns.

What are the three steps to evaluating any stock according to the script?

The three steps to evaluating any stock are: 1) Understand the business model (what does the company sell, and what are its costs?), 2) Evaluate the company’s growth prospects (using key operational metrics like price, volume, and EBIT margin), and 3) Assess the stock’s valuation (is it the right time to buy based on its current price and future potential?).