Discounted cash flow valuation of premier marketing public company limited.

Abstract

This thematic paper demonstrated how to value the stock price of Premier Marketing Public Company Limited (PM) 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. Premier Marketing Public Company Limited is a leading consumer products distributor and sales agent in Thailand specializing in convenient food distribution, which incorporate for almost 40 years. Since the company has gained a trust from many food producers to distribute their products. The interesting point is how the changing economic landscape to the ASEAN integration and growing in demand for processed and pre-packaged food will benefit the company in terms of food distributing demand. In addition, whether their long-term strategies can 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 PM share price is expected to be valued higher than the current share price by 17.6%. This results lead to my recommendation of “buy” because the current share price is considered to be undervalued.