RELATIVE VALUATION OF GULF ENERGY DEVELOPMENT PUBLIC COMPANY LIMITED

Abstract

In this paper, the relative valuation method was selected to estimate theshare value of Gulf Energy Development Public Company Limited (Gulf). I used trailing and forward PE, PBV, and EV/EBITDA multiples to determine Gulf's stock price in 2022 and 2023. Therefore, by using the average of the corresponding target price for each multiplier, Gulf's share price in 2022 is estimated at 55.46 baht per share. It is 8.75% higher than the current price of 51.00 baht on the same day (March 1). The target price will increase from the March 1 price which was 51. Therefore, we recommend the investors to buy Gulf stock because the current price of Gulf is undervalued. We recommend a revaluation of Gulf after the Covid-19 situation recovers and the economy of the entire country returns to normal operation. Financial data about Gulf's business will change due to changes in the macroeconomic environment and consumer demand, as well as improvements in the strategies of peer energy companies. To better understand the positioning of Gulf in the international market after the recovery of the epidemic, it is best to compare Gulf with a comparable benchmark company and re-value it again.