Discounted cash flow valuation of Chularat hospital public company limited.

Abstract

This thematic paper aims to value the stock price of Chularat Hospital Public Company Limited (CHG) base on discounted cash flow valuation model (FCFF) which represent the concept that the stock price of the firm should reflect its fundamental value in term of cash flow, growth and risk. Considering with upside in Thailand’s healthy trend and rising in aging society, these factors enhance CHG opportunity to grow in both domestically and throughout ASEAN especially for CLMV countries. The result as year ended 2016 target price of CHG shall approximately equal to 2.74 Baht per share while the current price settles at 2.82 Baht per share. The price has already reflected its fundamental; therefore, the valuation is indicative to HOLD. In addition, CHG’s op-eration involves such risk. The hospital still relies on medical persons as well as SG&A expenses from rapid hospital expansion’s plan in Thailand which can impact to compa-ny’s short-term margin and profit. In conclusion, the valuation study is to suggest company intrinsic value which the method still has some limitations. Therefore, the value must be looked carefully. However, the study can still provide guidance regard-ing intrinsic valuation for investors and interested person in health care companies.