DISCOUNT CASH FLOW MODEL OF SYNNEX (THAILAND) PUBLIC COMPANY LIMITED.

Abstract

This thematic paper demonstrated how to value the stock price of Synnex (Thailand) Public Company Limited (SYNNEX) which applied the concept of the discount cash-flow models. It reflected the company’s ability whether they can be survive and grow without equity or long term debt. I applied discount cash-flow model to express the valuation of the company’s stock price. the valuation from discounted cash flow method is the most appropriate because it takes into account the fundamental component of the firm such as net operating profit after-tax, net capital expenditure, and working capital, and computes these factors to obtain free cash flow to firm, the free cash flow available to both creditors and shareholders if the firm have no debt then discounts the value of free cash flow to firm and terminal value to the current period. The result is the enterprise value of the company. After subtracting EV from the value of interest bearing debts, non-operating assets, non-controlling interests, and value of equity, the result will be the value of equity of the firm. Therefore, our calculation of the stock price by using the discounted cash flow method, we concluded that the current appropriate price should be around 6.43 baht per share. So the recommendation is to buy the stock in the market since it is undervalue.