DISCOUNTED CASH FLOW VALUATION OF OSOTSPA PUBLIC COMPANY LIMITED

Abstract

The Osotspa Public Company Limited is Thailand’s largest manufacturer of non-alcoholic drinks that specializes in energy drink. The company’s three main business segments are: non-alcoholic beverages, personal care, health care and confectionery. The company also operates business in the south east Asian countries but most of the company’s majority sales are in Thailand. The company (OSP) used the discounted cash flow valuation procedure to estimate the intrinsic value based on expected future cash flows and discounts at present value, it was having a target share price at 40.28 baht per share, 6.69% upside potential compared to the current market price of 37.75 baht as of 2 July 2021. The difference was between +/-10%, therefore, the recommendation to investor is to “HOLD” the OSP stock.