Discounted cash flow valuation of AP (Thailand) public company

Abstract

Asian Property or AP (Thailand) Public Company Limited was established in 1991 engaging in the business of property development which covers the revenues from selling detached houses, and condominiums. The company is directed by Mr. Anuphong Assavabhokin as chief executive officer and a major shareholder. AP Thailand operates with the goal of being a property developer offering products or services that fulfill customers, together with associated parties to have a joyful life. To lead the organization to be number 1 in the nation’s real estate industry, The company has strategies to transform itself to be an unconstrained leader with great flexibility along with a corporate culture that prefers innovation DNA, emphasizing digital-oriented operations and marketing. The valuation method aims to get the target price of AP stock in the period by applying the discounted cash flow for the upcoming 4 years, from 2023 to 2027. The approach requires the variables to gain for a result: revenue, terminal value, weighted average cost of capital, and long-term growth rate. The target price of AP stock at the end of 2024 is approximately 14.61 baht which has an upside from present around 30%. This means the AP stock has become undervalued compared to its current market price. Thus, I would like to recommend “BUY” the stock.