DISCOUNTED CASH FLOW VALUATION OF THAI PRESIDENT FOODS

Abstract

This thematic paper was established with the purpose to assess the stock price of Thai President Foods (symbol TFMAMA) by utilizing the discounted cash flow valuation approach in order to issue the recommendation for the investors. Thai President Foods produces and distributes food items including instant noodles under the well-known brand “MAMA”, semi-finished foods, biscuits, bakery, fruit juice, and packaging. The top line sales were forecasted based on the growth of nominal GDP both in Thailand and foreign countries that the company exports to, together with the perpetual growth rate of 2.59% from the weighted historical performance from 2017 through 2022. According to the DCF model, the intrinsic value is projected to be 214 baht per share, indicating a 6% upside from the stock price at 202 baht per share, as of 3 March 2023. Thereupon, since the difference is not greater than 20%, the investment recommendation for TFMAMA is to “HOLD”.