Business analysis and valuation : The case of Duoc Hau Giang pharmaceutical joint stock company (DHG)
Abstract
Business analysis and valuation is one of the most important step in the investment decision-making process of all individual and institutional investors in the world. The purpose of this work is to identify the best stocks for investment from an aggregate of other stocks. This thesis will study the process of business analysis and valuation by analyzing Duoc Hau Giang Pharmaceutical Joint Stock Company (DHG). From this analysis, the future prospects of this company will also be realized.
In this thesis, three main steps of business analysis and valuation will be conducted are: business strategy analysis, financial analysis and prospective analysis.
Subsequently, the Discounted Cash Flow are applied to estimate the fair value
of DHG. WACC is then applied to calculate the cost of capital. Moreover, other assumptions have been employed to forecast the future performance of DHG.
Concluding that with a leading position in the pharmaceutical market, reasonable development strategies and overall good performance, DHG is identified a great choice for investment.
Keywords: Free cash flow, WACC, Analysis and valuation.