Discounted cash flow valuation of GMM grammy public company limited

Abstract

This Valuation Report offers a comprehensive analysis of GMM Grammy Public Company Limited, a leading media and entertainment company in Thailand. The assessment employs the Discounted Cash Flow (DCF) method to determine the fair market value of the company, considering its historical performance and future growth prospects. Significantly, the company experienced a Compound Annual Growth Rate (CAGR) of negative 7.13% from 2017 to 2022, indicative of challenges faced during this period. From 2023-2028, GMM Grammy anticipates a positive turnaround with a CAGR of 3.04%. The Terminal Growth Rate is conservative at 2.38%. The Weighted Average Cost of Capital (WACC) is determined at 5.29 %, incorporating the cost of equity and debt. According to the discounted cash flow (DCF) valuation, the expected value per share is 11.25 Thai Baht, indicating an undervaluation of 36% compared to the current stock price of 7.25 Baht as of November 2023. This implies a potential investment opportunity for stakeholders.