$MAPA
P/E De-rating is scary.
a fresh example of danger investing in high-multiple, high-expectation company.

Imagine, back in the end of 2019 you invested your hard-earned money to $MAPA at IDR530/shares. Since 2019, MAPA's revenue has grown 2.3x from IDR7.5tn in 2019 to IDR 17.2tn in 2024. Net profit also has grown satisfyingly from IDR686bn in 2019 to IDR1.35tn in 2024. ROE is also stable at 23% in 2019 and 19% in 2024. These achievements should make the company be perceived as a good company with healthy growth rate.

The investor that has been investing since 2019 must have expected to see a satisfactory investment return from his investment, but instead in 26/9/2025 MAPA traded at only IDR520 (-2% from end of 2019).

What has been happening is that the company doubled its EPS (2019-2024), but the P/E multiple de-rated from 22x in the end of 2019 to currently at only 10.3x. This result in a slight decrease in stock price for the past 5 years (from IDR530 to IDR520)

You could invest in a growing company with proven track record, good growth, great management and great brands but still lose money due to extreme valuation swing which mostly can be found in a growth company.

Key notes: P/E De/re-rating and extreme valuation swing could weight significantly more than revenue and profit growth in determining investment performance.