Discounted cash flow valuation of Robinson department store public company limited.

Abstract

This thematic paper demonstrated how to value the stock price of Robinson Department Store Public Company Limited (ROBINS) which applied the concept of discounted cash flow to firm model, creating a forecast and calculating a reasonable valuation of the firm’s share price and at the end making decision whether to buy/hold/sell the company’s stock. Robinson Department Store Public Company Limited (ROBINS) is the one of the largest and leading department store operator with more than 50% market share nationwide. As the company is able to successfully occupy strategic location in each regional area, particularly those situated along economic borders and expansion plan into the neighbour countries. The interesting point is how the changing economic landscape from the ASEAN integration will benefit their department stores and whether their investment plans will be able to maintain the market leader position; both of which will affect to their stock price and the overall value of the company. The result from this paper shows the 5 years’ future value of ROBINS share price is expected to be valued higher than the current share price by 45%. This results lead to my recommendation of “buy” because the current share price is considered to be undervalued.