DISCOUNTED CASH FLOW MODEL : FREE CASE FLOW TO FIRM OF BIG C SUPERCENTER PUBLIC COMPANY LIMITED.

Abstract

This thematic paper studies the Discounted Cash Flow Model: Free Cash Flow to Firm (FCFF) based on interesting company as Big C Supercenter Public Company Limited. Discounted Cash Flow Model: Free Cash Flow to Firm (FCFF) represents the net present value (NPV) of projected cash flows available to all providers of capital, net of the cash needed to be invested for generating the projected growth. The concept of DCF valuation is based on the principle that the business value is based on its ability to generate cash flows for the capital providers. According to that extent, the DCF relies more on the fundamental expectations of the business than on historical precedents, and it is a more theoretical approach relying on numerous assumptions. The result of applying valuation of Big C Supercenter with the support information as macro – economic, industry, competitive and investment analysis, it indicates that value of Big C is neither overvalued nor undervalued when compares to its current price as of 4 December 2014. Therefore, Big C is recommended to “HOLD” KEY WORDS: valuation, Discounted Cash Flow Model, modern trade, hypermarket, supermarket