Discounted cash flow valuation of global public company limited.

Abstract

This thematic paper demonstrated how to value the stock price of S.KHONKAEN Foods Public Company (SORKON) which applied the concept of the discounted cash flow valuation model. It reflected the company’s fair value based on the projection of future cash flow. I applied discounted cash flow valuation method to express the valuation of the company’s stock price. I have estimated sales growth, terminal value, and cost of good sales based on company, industrial and economic conditions. Moreover, I also computed WACC calculation using information from company’s cost of capital. The valuation is conducted for the next 5 years dating from 2015 – 2019. As a result the SORKON target price from my assumption is 267.45 THB, comparing to the current price of 81.50 THB, therefore we recommend BUY.