RELATIVE VALUATION OF OISHI GROUP

Abstract

This thematic paper determines whether the price of OISHI GROUP's stock (OISHI) on 3 March 2023 is undervalued or overvalued using five-year historical multiple data, which includes P/E, P/BV, and EV/EBITDA, as well as appropriate peers in the same industry such as ICHI, SNP, M, ZEN, and SAPPE. As the most suited valuation metric, the historical valuation bands were recommended, notably the Trailing P/E Band. This method involves analyzing whether OISHI's stock is undervalued in comparison to its historical P/E multiples shown on a trailing graph with five years of data. Based on these historical statistics, OISHI's target price is 56.03 THB, which is almost 20.50% higher than the current price. This price estimate suggests that OISHI’s stock price has significant future growth potential. The recommendation to "Buy" OISHI stock is also based on the company's strong fundamentals, which include a recurring profit and a high dividend yield.