RELATIVE VALUATION OF AP (THAILAND) PUBLIC COMPANY LIMITED

Abstract

The valuation method applied in this thematic paper is the relative valuation method by selecting AP (Thailand) Public Company Limited (AP) as a representative company to evaluate the value of AP. AP is in the property development sector. The company was founded in 1991 by Mr. Anupong Asavapokin and Mr. Phichet Wiphavasupakorn as major shareholders. The mission of AP is EMPOWER LIVING to create and empower people to live and enjoy their daily lives through valuable and meaningful innovative products and services. AP’s core business operates in three segments which are low-rise segment, high-rise, and other segments. AP has three key strategies to drive an organization that has begun to take action since 2017 consist of independently responsible leaders, innovative culture to build a corporate culture, and everything digital which will support rapid technology changes. The purpose of this thematic paper is to provide a valuation of AP. The concept of relative valuation is to compare the AP’s value with the value of related peers in the same industry. The chosen appropriate multiple method for estimating the target price is the trailing P/E multiple. The target price of AP based on the relative valuation method is 14.83 Thai Baht. Therefore, the result of applying relative valuation of AP (Thailand) Public Company Limited with supporting information indicates that the value of AP is undervalued compared to its current stock price. As a result, the recommendation to investors is to BUY the stock.