DISCOUNTED CASH FLOW VALUATION OF TOA PAINT (THAILAND)

Abstract

The intention of this thematic paper is to evaluate the stock price of TOA Paint (Thailand) by applying the discounted cash flow method. The method presents the forecast of future financial statements based on TOA’s financial fundamentals, expected sales growth from domestic and overseas’ GDP growth, and other effects such as exchange rate risk. The target price of TOA is 38.99 Baht per share which is 25.79% upside from the price of 3 March 2023. As a result, the recommendation is to buy TOA stock. TOA is the market leader in Thailand with around 50 percent of total market share. The company is in the strong position to grow and expand after COVID-19 situation. Moreover, TOA has intention to strengthen their distribution channels both online and offline to provide “Total solution” to the customer. Nevertheless, the thematic paper provides the estimated valuation based on the limited information and several assumptions, so there might be unexpected factors affecting the valuation.