DISCOUNTED CASH FLOW VALUATION OF BEAUTY COMMUNITY PUBLIC COMPANY LIMITED.

Abstract

Stock market, source of funding for the firms and source of investment for the investors, is changing every second due to both internal and external factors and circumstance. Fast information update and careful analysis of the business situation of targeted firms are crucial for consideration whether to take buy-sell-hold action on their stocks. Beauty Community PCL (BEAUTY) is the No.3 operator of cosmetic retail shops in Thailand with strong market invasion and high potential in business growth. The interesting point is their strong brand franchise, low-risk business model and the mid-growth cycle of its concept-store business. The new markets and stronger profitability will significantly drive the 2015 earnings upward. This is the motivation why I chose BEAUTY to analyse their inside business and financial situation, make a forecast and valuation with “discounted cash flow method”. From this paper, it shows the 5 years future value of JAS and points out their stock price which should be higher than the current one by 5.56% in the worst case scenario. Of course, it results in my recommendation to “hold” this stock at this present time.