Relative valuation Sabina public company limited

Abstract

This report aims to determine the fair value of Sabina Public Company Limited (SABINA) through a relative valuation method. Sabina is recognized as one of the leading lingerie product companies in Thailand. The assessment, conducted on November 24, 2023, employs various multiples such as Trailing and Forward Price Earning (PE), Price-to-Book Value (PBV), and Enterprise Multiple (EV/EBITDA). Based on these methods, the target price for Sabina is estimated to be 15.37 Baht per share for the year ending 2023 and 16.86 Baht per share for the year ending 2024, using the average price of each band. Notably, Bboth target prices deviate significantly from the current market price of 25.75 Baht as of December 11, 2023. Given this scenario, the recommendation for investors is to "HOLD" the shares. This is because, according to the analysis, the share prices are anticipated to remain higher than the target prices both in 2023 and 2024. It's important to consider that these results may indicate a potential discrepancy, and in such cases, a Discounted Cash Flow (DCF) analysis could offer a more accurate evaluation. Investors are advised to carefully weigh their options and consider the market dynamics before making any decisions.