Analysis model for company valuation : A case of Vietnam dairy products joint stock company

Abstract

Business analysis and valuation is used to analyze the performance of an enterprise in the past along with the economic and industry situation to measuring the intrinsic value of stock price of that firm and determine how well the firm performance. In my thesis, I analyze the consolidated financial statement of Vinamilk from 2011 to 2015 and the financial ratio to determine how efficient Vinamilk performed in all aspect about: operating activities, investing activities and financing activities. The discount cash flow model is used to measure the intrinsic value of VNM stock’s price. Thereby, this is the reference for those who want to invest in VNM security. The method that I used to evaluate VNM’s stock price is discounted cash flow model (DCF), in particular, applying free cash flow to firm approach (FCFF) for valuing VNM. Considering VNM’s core competences, we initiate VNM with a “Buy recommendation” and a target price of VND 157,313. Key factors: discounted cash flow model, free cash flow to firm, income statement analysis, balance sheet analysis, sensitivity analysis, common size, financial ratio.