Relative valuation of ananda development public company limited (Anan)

Abstract

This thematic paper studies the Relative Valuation Methods by selecting one representative company as Ananda Development Public Company Limited (ANAN). The Relative Valuation Methods such as P/E Multiple Method indicates the average forward P/E of peer competitors that have the same business structure as Ananda then multiplying with the forecasted next twelve months earnings to calculate the price per share of Ananda. The concept of Relative Valuation is based on the principle that the industry value depends on its related peer competitors’ ability to generate cash flow back to their companies. Therefore, it relies more on the industry overview of that particular sector. The result of applying Relative valuation of Ananda Development Public Company Limited with supported information such as macro-economic perspective, industry, competition, and investment analysis. It indicates that value of Ananda Development is undervalued when compares to its current price as of 29 December 2017. As a result, it is recommended to BUY the share sales.