Relatives valuation of modermform group public company limited.

Abstract

This objective of thematic project is to study how to find the valuation of the company though stock price. In this project I selected Modermform group which is listed company in SET. I applied multiples valuation method to express the valuation of the stock price of Modern. Because of the ratio of the company in SET are not reasonable so I use the ratio from the company in emerging market which are in the furnishing sector. I calculated 3 ratios which composed of PE, P/BV and EV/BITDA. The result of those ratios are different and EV/EBITDA seems to be the most reasonable among other multiple valuation methods as it gives the value that is closest to the market price. Target price from EV/EBITDA imply that Modern should be 14.38 Baht per share and undervalued so its recommend to buy. KEY WORDS: multiples valuation, PE. P/BV, EV/EBITDA, undervalue