Business analysis and valuation : The case of Binh Minh plastic pipes joint stock company (BMP-HOSE)

Abstract

This thesis conducts an in-depth analysis of the Binh Minh Plastic Joint Stock Company (BMP) in order to determine the fair value of the company‟s share price and to conclude whether it is over- or undervalued. Binh Minh plastic company is one of the leading companies in the construction plastic pipes industry of Vietnam and one of most well known brand in the Southern market. It accounts for 50% market share in the South and 25% of the whole Vietnam construction plastic pipe market share. Its products mainly are uPVC pipes, HDPE pipes, PP-R pipes and other following plastic appliances. The BMP JSC is analyzed by conducting a strategic and financial analysis, where several models are applied and financial ratios thoroughly analyzed from a historical perspective. Strategic analysis would include business analysis first and then analyze industry which BMP is working in and how effective is its strategy. The financial analysis will focus on BMP‟s historical financial performance to illustrate more about its business operation and its strategy. The findings from these analyses act as a foundation for forecasting the future performance of the company. Finally, the Discounted Cash Flow (DCF) valuation method is applied to estimate the intrinsic value of BMP stock.