DISCOUNTED CASH FLOW VALUATION OF SANSIRI

Abstract

This thematic paper aims to evaluate the stock price of Sansiri Public Company Limited (SIRI) by using the Discounted Cash Flow valuation method (DCF) to identify the company intrinsic value based on the thorough assumptions used in the valuation, which include the company’s past and future operation performance, the industry growth, the risk factors, and the cost of equity. The economic recovery after the COVID-19 pandemic would stimulate households to purchase houses and condominium for both living and investing, which creates higher demand for property development companies such as Sansiri. The DCF valuation method indicates the estimated target price by the end of 2023 of SIRI is THB 2.26 per share, while the latest close price on 24 April 2023 was THB 1.85 per share, which has the 22.16% upside. As a result, the recommendation for SIRI is “BUY”. The valuation should be reevaluated periodically as the risks and market situations might change over the time.