Discounted cash flow valuation of quality houses public company limited (QH)

Abstract

This thematic paper studies the Discounted Cash Flow Valuation Model: Free Cash Flow to Firm (FCFF) by selecting one representative company as Quality Houses Public Company Limited (QH). The Discounted Cash Flow: Free Cash Flow to Firm (FCFF) represents the net present value (NPV) of projected cash flows available to all capital providers and net cash needed to be invested for generating the projected cash flow. The concept of DCF valuation is based on the principle that the business value depends on its ability to generate cash flows for capital providers. Therefore, it relies more on the fundamental factors of the business than the precedents factors, and it is more theoretical approach relying on numerous assumptions. The result of applying DCF valuation of Quality Houses Public Company Limited with supported information such as macro-economic perspective, industry, competition, and investment analysis. It indicates that value of Quality Houses is neither overvalued nor undervalued when compares to its current price as of 16 November 2017. As a result, it is recommended to HOLD the share sales