Relatives valuation of major cineplex group public company.

Abstract

This thematic paper applied the multiple valuation models in order to value Major Cineplex Group Public Company (MAJOR) stock prices. Valuation multiples are the quickest way to value a company, and are useful in comparing similar companies (comparable company analysis). They attempt to capture many of a firm's operating and financial characteristics in a single number that can be multiplied by some financial metric to yield an enterprise or equity value. For this report, it will emphasize more on P/E, P/BV, and EV/EBIDA. Applying multiple valuation method to express the value of the company’s stock price. As a result the Major Cineplex target price from using forward P/E method the target price at 34.64 Baht per share comparing to the current price of 27.25 THB, therefore we recommend BUY.

KEY WORDS: Major Cineplex / Valuation / Multiple Valuation / Business strategy