Relatives 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 the multiple valuation models composed of P/E, P/BV and EV/EBITDA. 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. 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. Since the EV/EBITDA method is the most appropriate market benchmark for the PM’s valuation, the result of PM’s target price from forward EV/EBITDA is 10.45 Baht, comparing to the current price of 9.90 Baht. Therefore, it leads to my recommendation of “buy” because the current share price is considered to be undervalued.