Discounted cash flow valuation of major cineplex group public company

Abstract

This thematic paper applies the Discounted Cash Flow (DCF) model to evaluate the stock price of Major Cineplex Group Public Company (MAJOR). The DCF method is a fundamental valuation approach that estimates a company's intrinsic value by forecasting its future cash flows and discounting them to their present value. This analysis involves projecting the company's free cash flows and determining an appropriate discount rate to reflect the time value of money and risk. By employing the DCF model, we aim to derive a more comprehensive valuation of Major Cineplex's stock price. The DCF analysis results in a target price of $0.64 per share for Major Cineplex, indicating an 81% upside potential compared to the current price of $0.26 per share. Therefore, based on our DCF evaluation, we recommend a BUY.