Discounted cash flow valuation of sappe public company limited

Abstract

This thematic paper seeks to assess the intrinsic value of SAPPE Public Company Limited (SAPPE) utilizing the discounted cash flow valuation method (DCF). The estimated share value reflects the company's core fundamentals, projected future performance, and inherent risks. SAPPE operates within rapidly expanding markets with relatively high nominal GDP growth rates. We anticipate that this economic growth will increase demand for soft drink products, as historical data indicates a direct relationship between the company's sales and disposable income levels. Our analysis results in a target stock price of 80.42 Baht per share, which suggests an 8.5% downside from the current market price of 87.25 Baht as of July 23, 2024. Consequently, we recommend investors to HOLD their SAPPE stocks. Ultimately, we hope this study provides valuable insights for investors interested in the intrinsic valuation of SAPPE Public Company Limited.