Discounted cash flow valuation of Ananda development public company limited.

Abstract

This thematic paper provides a perspective on valuation studies focus on the stock price of Ananda Development Public Company Limited (ANAN) based 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 real estate tread and rising in infrastructure of Thailand, these factors enhance ANAN opportunity to grow in both urban and upcountry. The result as one-year target price of ANAN shall approximately equal to 3.53 THB, comparing to the current price of 4.00 THB, therefore, the valuation is indicative to SELL. In conclusion, the valuation study is to suggest company intrinsic value which the method 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 real estate companies.