DISCOUNTED CASH FLOW VALUATION OF JMT NETWORK SERVICES PUBLIC COMPANY LIMITED

Abstract

This thematic paper aims to evaluate the stock price of JMT Network Services Public Company Limited (JMT) using the discounted cash flow valuation model (FCFF), which represents the concept that a company's stock price should reflect its intrinsic value in terms of cash flow, growth, and risk. Considering the increase in personal financial demand in Thailand, the trend in the non-life insurance market, and the increase in non-performing loans, as well as the monthly income per household, these factors will enhance JMT's performance. The target price as of year-end 2022 of JMT is equal to 104.23 Baht per share with 40% upside from the current price of 74.50 Baht per share on 26 July 2022. Therefore, the valuation is indicative to BUY. In conclusion, the valuation study is intended to suggest a company's intrinsic value, though the method has some limitations. As a result, the value must be carefully examined and re-evaluated if certain factors change. However, the study can still provide investors and others interested in asset management companies with guidance on intrinsic valuation.