Discounted cash flow valuation of mc group public company limited.

Abstract

The Stock market which acts as a 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 circumstances. Fast information updates and careful analysis of the targeted firms are crucial for taking into consideration whether to buy-sell-hold stocks. MC Group Public Company Limited (MC) manages ready-to-wear retailing business and related apparels under its own brands and invests in other companies. As MC provides apparel and there are many competitors in the market, people concern more about their image and AEC is an opportunity for MC to expand into new market. Those factors will affect to their stock price, but in which way? This is the motivation why I choose MC to analyse their business and financial situation, creating a forecast and calculating a reasonable valuation of the firm’s share price using the “discounted cash flow” method. The result from this paper shows the 5 years’ future value of MC share price is expected to be valued higher than the current share price by 31.83%. This results lead to my recommendation of “buy” because the current share price is considered to be undervalued.