Relatives valuation of jasmine international public company limited.

Abstract

This thematic paper demonstrated how to value the stock price of Jasmine International Public Company (JAS) which applied the concept of the multiple valuation models. It reflected the company’s ability whether they can be survive and grow without equity or debt. I applied multiples valuation method to express the valuation of the company’s stock price. I calculated 3 ratios which composed of PER, P/BV and EV/EBITDA. We consider using EV/EBITDA as it is the most appropriated market benchmark for valuation which EV/EBITDA derived from its represent firm activities. EV/EBITDA is the ratio which the measurement the company’s forward looking-focus in the next 12 months and it is the investor’s perception toward the company. As a result the JAS target price from forward EV/EBITDA is 5.65 THB, comparing to the current price of 7.4 THB, therefore we recommend SELL.

KEY WORDS: Jasmine / Valuation / Multiple Valuation / Telecommunication