Relatives valuation of Chularat hospital public company limited.

Abstract

This thematic paper aims to value the stock price of Chularat Hospital Public Company Limited (CHG) by using the relative valuation method, the method with using multiples and benchmarks to determine company value, i.e. EV/EBITDA, PER, and PBV. The multiples come from the projection of financial statement which all data given by the Chularat ’s investor relationship (IR) and analysis meeting. Forecast for CHG following the guidance of capacity expansion and good management in cost structure. Main drivers are both internal and external factors namely the revenues expansion as its hospital phrase continue to build up, strong growth momentum of global health trend trend and continued growth of international patient arrivals to Thailand. By using the relative valuation methods, the target price of CHG at the end of 2016 is 2.24 THB per share, compared to current price as of December 2, 2016 at 2.82 THB, the downsize is at 20%. With many supportive factors, the strongly recommendation for CHG is HOLD.