Relative valuation of president bakery public company limited.

Abstract

This thematic paper demonstrated how to value the stock price of President Bakery Public Company Limited (PB) which applied the concept of multiple valuation models were applied to find the relative market value of the firm, valuing the indirect (or relative) price of the equity using key statistics that are assumed to relate to the value as perceived and interpreted by the market President Bakery (PB) is a leading baked goods company in Thailand such as ready-to eat bread, ready-to eat sandwiches, cakes and confectionaries, with a 26% market share which is the highest market share in year 2017. Moreover, the company had invested in the new factory which was “Bangchan 2” and started the operation in November 2017 which will increase the production capacity about 20%. The new investment is expected to deliver better earnings for the company. The result from this paper shows the value of PB share price is expected to be valued at 6% higher than the current share price. However, the ability to gain back market share and cost control is still unclear. This result leads to my recommendation of “hold”.