DISCOUNTED CASH FLOW VALUATION OF COM7 PUBLIC COMPANY LIMITED

Abstract

The purpose of this valuation report is to find the target price of COM7 Public Company Limited (COM7), one of the most growing IT products retailers in Thailand. In 2017-2021, COM7 has achieved 22.7% of CAGR from vigorous branch expansion nationwide. Based on the company’s ongoing expansion plan, it is expected to keep double digits of CAGR in 2022-2026 and 3.8% of terminal growth rate is estimated at the end of 2026. After discounting the free cash flow to the firm in the projection period, estimated share value was found as 42.34 THB. The target price is 0.4% downside compared to the current stock price at 42.50, 6th of April 2022. There is no doubt about the previous enormous growing momentum of COM7 driven by long-served management. However, in terms of profit and free cash flow generating power in the future, there are still some limitations due to the company’s retail-based business portfolio. Thus, the recommendation for the current/potential investors to COM7 is “Hold”, till any further new business plan comes out from the company.