DISCOUNTED CASH FLOW VALUATION OF MK RESTAURANT GROUP PUBLIC COMPANY LIMITED.

Abstract

The objective of this study was to illustrate the beneficial of discounted cash flow on the valuation in stock price. To be able to find an intrinsic value or fair value of an interesting stock, MK Restaurant Group Public Company Limited, as it is one of the most popular techniques which can help investors to make an investment decision more accurately. The methodology under discounted cash flow valuation method are focused on fundamental of the company such company's capability to generate future income called cash flow, cost of fund, investment plan, asset utilization, and etc. Therefore, after I have calculated MK Restaurant Group Public Company Limited stock price with discounted free cash flow to equity method plugging in all assumptions to find an appropriate price. The result is that current price as of December 4, 2014 at 60 Baht still undervalued comparing with projected fair value at 63.75 Baht. It has available upside gain about 6.22% which not reflect in the current situation. With this result, I do suggest to "HOLD" position in MK Restaurant Group Public Company Limited. KEY WORDS: Valuation, discounted cash flow, free cash flow to equity, chain restaurant business