Business Valuation for Small Medium Enterprise in the Shoe Industry

The footwear, leather product, and clothing industry contributed around IDR 35.14 trillion to the Indonesian state revenue in 2016. One of the products produced by this industry is sneakers. NAH Project is one of the local brand sneakers from Bandung has a desire to grow their business by opening a store, but to do it NAH Project needs additional funds from an investor. This research aims to conduct a company valuation of NAH Project and to find out whether customer preferences in buying sneakers affect the company valuation. There are five scenarios are conducted that are used for company valuation. This research uses DCF and APV methods in calculating company valuations and the questionnaire is used to find out the customer preferences and the customer price expectations toward sneakers. The results of this research show that the most optimal value for the company valuation is the first scenario that focuses on the official store with the value of IDR 6.4 billion. The customer's preference for sneakers and customer price expectations for sneakers affect the company valuation on NAH Project where customer preferences and customer price expectations for sneakers can affect the company's sales level, which will be a turmoil in the company's sales.