RELATIVE VALUATION OF MINOR INTERNATIONAL PLC

Abstract

In this paper, the relative valuation method was selected to estimate the share value of Minor International PLC (MINT). I used trailing and forward PE, PBV, and EV/EBITDA multiples to determine MINT's stock price in 2022 and 2023. Therefore, by using the average of the corresponding target price for each multiple, MINT's share price in 2022 is estimated at 38.30 baht per share. It is 16% higher than the current price of 33.00 baht on Aug 22th. Therefore, I recommend that investors buy MINT stock because the current price of MINT is undervalued. In the future, the financial performance of MINT's business will change due to the lifting of Covid-19 restrictions, and changes in the macroeconomic environment and consumer demand. To better understand the positioning of MINT in the international market after the recovery of the pandemic, it is best to compare MINT with a comparable benchmark company and re-value it again.