Discounted cash flow valuation of GFPT public company limited.

Abstract

This thematic paper demonstrated how to value the stock price of GFPT Public Company Limited (GFPT). The valuation of GFPT was derived from an adjusted present value method to determine the appropriated intrinsic stock value. The process starts with creating a forecast, calculating a reasonable valuation, and recommendation whether to buy, sell, or hold. GFPT is one of the Thailand chicken processors and marketers which provides products and services to customers both domestic and international markets. With the aim to be a leading chicken meat exporter with its fully vertical integrated chicken production, it acts as a parent holding company of the group which operates a fully vertical integrated chicken production which includes feed mill, breeder farm, hatchery farm, broiler farm, chicken evisceration and processed food. Its main products of the group are cooked chicken products, fresh and frozen chicken meat, processed food, land animal feed, and aquatic animal feed. The company show growth potential as the outlook for Thai frozen and processed chicken industry is strongly positive due to both domestic demand and growing demand from export markets. This method is suitable under the assume length of timeframe where GFPT was forecasted for ten years from Y2017 to Y2026. The adjusted present value method (APV) method arrived at the value per common share of THB 18.20. Therefore, the appropriated target price for GFPT under an adjusted present value method is THB18.20 with the recommendation of “BUY”