RELATIVE VALUATION OF CHAROEN POKPHAND FOOD PUBLIC COMPANY LIMITED.

Abstract

This thematic paper aims to valuate value of Charoen Pokphand Foods Public Company Limited by using Relative Valuation method. Charoen Pokphand Foods Public Company Limited (CPF) operates in agro-industrial. CPF classify their business into 3 categories: food business, animal feed, and farming. CPF has continued expanded their business line to every level of agro-industry operation. They export to more than 30 countries and invest internationally in 17 countries. Relative Valuation model is based on a concept that we can compare the target company with other peer companies in the same industry by using financial ratio. To get target price of CPF, 3 domestic and 3 international companies in same industries were selected to be the benchmarks. Pro-forma PL and pro-forma Balance Sheet were estimated by using growth rate at 2.65% to get pro-forma Book Value, estimated EPS and estimated EBITDA as inputs in the model. The result from this paper shows target price of 34.82 Baht. so I would recommend to ‘Buy’ due to the stable growth and several sources of revenue.