Relative valuation of major cineplex group public company

Abstract

This thematic paper applied the multiple valuation models in order to value Major Cineplex Group Public Company (MAJOR) stock prices. Valuation multiples are the quickest way to value a company, and are useful in comparing similar companies (comparable company analysis). They attempt to capture many of a firm's operating and financial characteristics in a single number that can be multiplied by some financial metric to yield an enterprise or equity value. For this report, there will be P/E, P/BV, and EV/EBITDA relative valuation methods to express the value of the company’s stock price. As a result the Major Cineplex target price from using 5-year historical P/E multiple median method is the target price at $0.34 per share with upside potential 34% compared to the current price of $0.26 per share therefore we recommend BUY.