DISCOUNTED CASH FLOW OF KCE ELECTRONICS PUBLIC COMPANY LIMITED

Abstract

The purpose of this valuation report is to find the target price of KCE Public Company Limited (KCE), one of the massive PCB manufacturers for Automotive in Thailand and listed in the global top rank. In 2017-2021, KCE’s revenue growth was slow down from the impact of COVID-19 spreading in global. During the past phase, KCE projected that there are sustainable potential in Automotive market especially EV car which require a massively technology inside. Therefore, KCE invest a lot in expansion the facility and technology and plan that they will reverse back to achieve CAGR 15% from 2022- 2026. The terminal growth estimated 2.14% as perpetual growth after year 2026. After discounting the free cash flow to the firm in the projection period, estimated share value was found as 77.86 THB. The target price is directly above compared with the current stock price at 65.60 Baht per share as of 31st March 2022. It simply imply that the current price is undervalue to the target price. The incoming trend of technology in passenger car and emerging of EV car market would trigger the high demand of PCB part and strengthen the financial performance of KCE company. Thus, the recommendation for the existing and potential investors to KCE is “Buy”, or until any further new business plan release out from the company.