DISCOUNTED CASH FLOW VALUATION OF HAAD THIP PUBLIC COMPANY LIMITED.

Abstract

This thematic paper applies the discounted cash flow valuation method (DCF method) to model the intrinsic value of HaadThip company by forecasting the expected cash flows and using net present value to discount those cash flows, taking the time value of money into consideration. The method involves evaluating the firm value by using a set of assumptions to forecast future events including macro and micro analysis, competition analysis, the company financial analysis, investment, and operational effects, and stock price valuation. HaadThip Public Company Limited (HTC) is a non-alcohol beverage manufacturer in the southern provinces of Thailand. The company has a monopoly right to manufacture and distribute Coca-Cola products in the 14 southern provinces. The purpose of this paper is to estimate HaadThip’s company value by predicting the future cash flow and stock value based on referenceable assumptions. Finally, the result from the analysis shows the target price of HaadThip company with the recommendation to “BUY”.