Discounted cash flow valuation of diamond building productions public company limited.

Abstract

This thematic paper aims to value the stock price of Diamond Building Products Public Company Limited (DRT) base on discounted cash flow valuation method which has the concept that stock price of the firm should reflect its fundamen-tal value in term of cash flow, growth and risk. Together with upside economic condi-tions and rising in government expenditure enhance DRT opportunity to grow not only for domestically but throughout ASEAN especially for CLMV countries. The result as year ended 2016 target price of DRT shall approximately equal to 5.69 Baht per share while the current price settles at 5.15 Baht per share; therefore, the valuation is indica-tive to BUY. However, such an operation is not without risk. Various raw materials still rely on third parties as well as pending regulation on limitation uses of asbestos in Thailand can impact to company operation activities. In conclusion, the valuation study is to suggest company intrinsic value which the method still has some limita-tions. Therefore, the value must be looked carefully. However, the study can still pro-vide guidance on processes of intrinsic valuation for investors and interested person in material construction companies. KEY