DISCOUNTED CASH FLOW VALUATION OF AP (THAILAND) PUBLIC COMPANY LIMITED

Abstract

AP (Thailand) Public Company Limited (AP) is a property development in the category of detached houses, townhouses, and condominiums. It was founded by Mr. Anuphong Assavabhokhin and Mr. Pichet Vipavasuphakorn as major shareholders in 1991. The mission is to be the most responsive creator for our customers. There are three key strategies to drive an organization consisting of independent responsible leaders, innovative culture and everything digital. The valuation method that is selected in this paper is Discounted Cash Flow (DCF). The concept is to estimate the company value based on expected free cash flows in the future and discount back to present value. The sales from real estate rise by 6.07 CAGR from 2021-2025. While the net profit growth by 2.67% CAGR. The weighted average cost of capital (WACC) is 8.54% and terminal growth is 1.374% from the average inflation rate in 2021-2025. Therefore, the price is 9.40 baht per share with current upside 15% compared to the current stock 8.20 baht as of 14 July 2021. I would like to recommend “BUY”.