Discount cash flow valuation of Bangkok chain hospital public company limited.

Abstract

This thematic paper intends to value the stock price of Bangkok Chain Hospital Public Company Limited (BCH) 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 as well as monthly income per household, these factors enhance BCH opportunity to grow in both domestic and international especially for CLMV countries. The target price of year ended 2018 of BCH shall approximately equal to 18.11 Baht per share with 3% upside from the current price of 17.50 Baht per share on 20 November 2018. Therefore, the valuation is indicative to HOLD. In addition, BCH has strong profit from core operation. The expansion in Greenfield project will increase in capacity to support more patients Moreover the rising performance of World medical center support the performance of BCH. 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 regarding intrinsic valuation for investors and interested person in health care companies.