RELATIVE VALUATION OF MK RESTAURANT GROUP PUBLIC COMPANY LIMITED

Abstract

This thematic paper intends to value the stock price of MK Restaurant Group PCL (M) by using relative valuation methods. PE band, PBV band, EV to EBITDA band, PE multiple, PBV multiple, EV to EBITDA multiple were applied to value this company. From the comparison with peers (OISHI, SNP, ZEN, HAIDILAO and XIABUXIABU), it is showed that M’s forward P/E ratio is close to median forward P/E of peers. Forward P/E multiple is applied to this stock as the company focuses on growing its earnings per share from low base in last year from COVID-19. Finally, the target price of M is 57.13 baht, it provides 12.5% upside from current price at 50.75 baht. So, the recommendation is “BUY”.