Discounted cash flow valuation of major cineplex group public company.

Abstract

This thematic paper applied the Discounted cash flow Model (DCF) in order to value Major Cineplex Group Public Company (MAJOR) stock prices. DCF is considering as one of the most theoretically correct and applicable valuation method to determine the value of the stock because it was calculated the company’s value from fundamental information by projecting its future cash flows and then using the Net Present Value (NPV) method to find the intrinsic value of those cash flows. Applying discount cash flow method to express the valuation of the company’s stock price by forecasting free cash flow by using an appropriate assumption to forecast. As a result the Major Cineplex target price from Discounted cash flow is 36.84 THB, comparing to the current price of 27.25 THB, therefore we recommend BUY.

KEY WORDS: Major Cineplex / Valuation / Discounted Cash flow valuation /