RELATIVE VALUATION OF OISHI GROUP PUBLIC COMPANY LIMITED

Abstract

This thematic paper aims to value Oishi Group Public Company Limited's stock price by applying the relative valuation method. I applied Trailing and Forward Price-to-Earning (PE), Price-to-Book Value (PBV), Enterprise Value-to-Earnings before Interest, Taxes, Depreciation, and Amortization (EV/EBITDA) multiples to determine the share price of Oishi. As a result, on 7 July 2021, Oishi's share price for the year ended 2021 is estimated to be 43.32 Baht per share by using the average of all target prices from each band. It is higher than the current price on the same date, 41.75 Baht, by 3.8%. Recommendation criteria are 10% higher from current price will be BUY, and 10% downside will be SELL. The target price, 43.32 positions within the BUY and SELL range. Moreover, Oishi's performed well and could sustain a strong market position in the Ready-to-Drink tea sector in Thailand during the Covid-19 outbreak. So, we need to review whether Oishi could carry on this sustainability. Thus, we issued a "HOLD" recommendation.