RELATIVE VALUATION OF HAADTHIP PUBLIC COMPANY LIMITED

Abstract

This thematic paper illustrates the value the stock of HAAD THIP Public Company Limited (HTC) from the relative valuation method based on multiples of trailing approaches and forward approaches. The multiple for the relative valuation method that I use consist of Price to Earnings per share, Price to Book Value and Enterprise value to EBITDA methods to forecast the target price of the HAAD THIP Public Company Limited. The forecasting financial of HaadThip Public Company Limited (HTC) under relative valuation has considering and integrating of the company financial analysis, macro analysis, industry analysis, competition analysis, and share price valuation. HaadThip Public Company Limited (HTC) is a producer of non-alcoholic beverages. It has also been given Coca-Cola franchise status for 14 provinces in southern Thailand. I recommend the investor to use Price to Book value multiple from trailing approach. This multiple could determine the company capacity and the market benchmark multiple for valuation more appropriate than other multiples. As a result, the answer from the analysis shows the target price of Haadthip company overvalued when compared to the current market price with the suggestion to “BUY".