Discounted cash flow valuation of Sabina public company limited

Abstract

The purpose of this thematic paper is to estimate the intrinsic value of Sabina Public Company Limited (SABINA) using the Discounted Cash Flow (DCF) method. SABINA, Thailand’s leading lingerie brand, has successfully transitioned from OEM manufacturing to a high-margin, brand-focused business. Its growth strategy is driven by branded product expansion, omnichannel retail development, and regional expansion into CLMV countries and the Philippines. The company reported record performance in FY2023, supported by strong consumer demand, efficient cost management, and lean manufacturing. Based on projected Free Cash Flows to the Firm (FCFF), a terminal growth rate of 3%, and a Weighted Average Cost of Capital (WACC) of 8.51%, the DCF valuation indicates an intrinsic value of THB 20.10 per share at the end of FY2024 (t = 0). Adjusted forward to FY2025 (t = 1), the implied target price is THB 21.80 per share, reflecting a potential 48.3% upside from the current market price of THB 14.70. Therefore, this study issues a Buy recommendation for SABINA shares.