Relatives valuation of diamond building products public company limited.

Abstract

This thematic paper aims to value the stock price of Diamond Building Products Public Company Limited (DRT) which applied the concept of the multiple valuation models. applied multiples valuation method to express the valuation of the company’s stock price. I considered and calculated 3 ratios which composed of P/E, P/BV, and EV/EBITDA, all are based on our projected financial statement and assumptions. The forecasted financial statement gathered growth and risk. The upside economic condition and government expenditure including export through ASEAN for CLMV countries are the opportunities, while various risks may come from raw materials, government regulations and competition in the market. As the result, the relative value of DRT stock is THB 5.85, which is overvalued when compare to the current price at THB 4.9. BUY position for DRT’s stock price is recommended. In conclusion, the valuation study is to suggest company relative value which method still has some limitations. However, the study can still provide some guidance on processes of valuation for investors and interested person in material construction companies.