RELATIVE VALUATION OF TOA PAINT (THAILAND)

Abstract

This thematic paper presents the valuation of TOA Paint (Thailand) Public Company Limited which applies relative valuation methods in order to evaluate TOA’s target price for 2023. The paper covers business description, macroeconomic and industry analysis, competition analysis, valuation, and investment risk. Then, the relative valuation is conducted in terms of both historical multiple bands and peer group multiples by using three multiples which are P/E, P/BV, and EV/EBITDA. Nonetheless, the method that is most suitable for TOA in this thematic paper is historical multiple bands because TOA and its peers are quite different in terms of fundamental outlooks. Regards to the findings, investors are recommended to “Hold” TOA because the target price for 2023 is THB 34.4, while the current price as of March 2, 2023, is at THB 31.5 which implies only 9% upside potential.