DISCOUNTED CASH FLOW VALUATION OF OISHI GROUP PUBLIC COMPANY LIMITED

Abstract

In this paper, the discounted cash flow (DCF) valuation method was selected to estimate the share value of Oishi Group Public Company Limited (Oishi), based on the projections of expected cash flows. In light of the Covid-19's changing customer behavior, which has resulted in an increase in the healthy and well-being trend as well as the rapid development of online meal delivery, Oishi's growth in both the food and beverage businesses has been boosted. Oishi's target stock price for the year ended 2021 was expected to be 49.33 Baht per share, representing an 18% increase over the current price of 41.75 Baht per share on July 7, 2021. According to our DCF analysis, the present stock price is undervalued. As a result, we issued a BUY recommendation. Furthermore, there were several flaws in DCF valuation, such as future cash flow predictions being less accurate in a unique situation like the Covid-19 outbreak. Therefore, the value must be carefully examined. However, the valuation value provides investors and other interested parties in food beverage companies with guidance on intrinsic valuation.