vietnam national university, HANOI hanoi school of business Ngo Viet Duc STOCK VALUATION IN VIETNAM THEORY, PRACTICE AND RECOMMENDATION THE CASE SACOM master of business administration thesis Hanoi - 2007 TIEU LUAN MOI download : skknchat@gmail.com vietnam national university, HANOI hanoi school of business Ngo Viet Duc Stock valuation in Vietnam THEORY, PRACTICE AND RECOMMENDATION the case sacom Major: Business Administration Code: 60 34 05 Master of business administration thesis Supervisor: DR CHU THANH TRAN PHUONG LAN, MBA Hanoi – 2007 TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENTS ABSTRACT i TÓM TẮT ii ACKNOWLEDGMENTS iii LIST OF TABLES v LIST OF FIGURES vi INTRODUCTION CHAPTER 1: LITERATURE REVIEWS: STOCK AND STOCK VALUATION 1.1 STOCK – DEFINITION, TYPES AND FEATURES 1.2 VALUATION 1.2.1 Valuation .8 1.2.2 Value .8 1.2.3 Price 10 1.2.4 Time value of money 10 1.2.5 Present value .11 1.3 VALUATION MODELS 13 1.3.1 Internal Rate of Return (IRR) .15 1.3.2 CAPM 16 1.3.3 Book Value (BV) 18 1.3.4 P/E ratio (P/E) .18 1.3.5 Dividend Discount Model (DDM), Discounted Cash Flow (DCF) 19 CHAPTER 2: APPLIED VALUATION METHODS IN EVALUATING CABLES AND TELECOMMUNICATION MATERIALS JOINT-STOCK COMPANY (SAM) .22 2.1 OVERVIEW OF VALUATION METHODS IN VIETNAM 22 New requirements for enterprise valuation 23 2.1.1 Valuation before 1996 23 2.1.2 Valuation 1996 – 1998 24 2.1.3 Valuation 1998 – present 25 2.1.4 Pros and cons of valuation methods in Vietnam .27 2.2 CABLES AND TELECOMMUNICATION MATERIALS JSC – SACOM OVERVIEW 30 2.3 HISTORY OF SAM VALUATION AND PRICE 31 TIEU LUAN MOI download : skknchat@gmail.com 2.3.1 Stock market and SAM at early stage 31 2.3.2 Price adjustment and decrease period 32 2.3.3 SAM Internal Value 33 2.4 VALUATION OF SAM AT PRESENT .35 2.4.1 Applied Advantageous valuation method to value SAM quarterly stock prices in 2006 35 2.4.2 Applied P/E (Group D) to value SAM quarterly stock prices in 2006 .36 2.4.3 Applied Dividend discount model – DDM (group C) to value SAM quarterly stock prices in 2006 37 2.4.4 Applied Discounted Cash Flow Model – DCF (group C) to value SAM quarterly stock prices in 2006 40 CHAPTER 3: COMMENTS AND RECOMMENDATION OF THE VALUATION METHODS IN VIETNAM 44 3.1 COMMENTS 44 3.1.1 Advantegeous value 44 3.1.2 P/E multiple 45 3.1.3 DDM, DCF 45 3.2 RECOMMENDATION TO APPLY VALUATION MODELS IN VIETNAM 47 3.2.1 Internal adjusting factors 49 3.2.2 External adjusting factors 50 CONCLUSION 52 REFERENCES 53 APPENDIX 54 APPENDIX Beta of SAM over 280 weeks (2000-2006) 54 APPENDIX SAM’s historical Balance Sheets 60 APPENDIX SAM’s historical Income Statements 62 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM LIST OF FIGURES Figure 1.3.2 Securities Market Line 17 Figure 2.3.2 SAM price movement (2000 – 2006) 30 LIST OF TABLES Table 1.3.4 P/E facts 19 Table 2.1 Number of joint stock companies 2000-2004 22 Table 2.1.1 Equitized enterprises before 1996 24 Table 2.2 SAM Fundamental Financial Indicies 2000-2005 28 Table 2.3.1 Comparison between market price and listed price as expected by enterprises 29 Table 2.3.3 Value of five listed securities according to accounting figures 31 Table 2.4.1 SAM years Fundamental Financial Indicies 35 Table 2.4.2 P/E of listed stock 36 Table 2.4.4 (a) Historical FCFE for 05 years (2002-2006) 37 Table 2.4.4(b) Cashflow projection until the end of high growth period (2008) Table 2.4.4(c) Cashflow projection until the end of high growth period (2008) TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM INTRODUCTION Necessity of the thesis The activity in stock market exchanges has increased much in Vietnam nowadays Consequently, the stock market is playing a growing important role to the society Many institutions as well as individuals are heavily invested in the stock market In order for the stock market to develop normally and stably, understanding valuation techniques of firms is very important Without some sorts of model to estimate value, investors would not be able to arrive at conclusions on what price to buy or sell an asset When researching different valuation results of a specific firm, the value often differs – we can see the sample in SAM case discuss in next chapter Different in valuation may come from different views of the future or assumption or technique and, hence, different recommended values We can’t know which of these values is the most accurate and this is only one of the many difficulties involved in valuation In Vietnam stock market, the situation is much more difficult since it’s an emerging market and to some aspect, there’s no rule for market like this in its early stage This study will focus on several valuation models that mostly use in firm valuation in Vietnam: Multiples (P/E), ABV, DDM and DCF in order to show the different of each method and their results, through understanding of those model and try to find the possible adjustment to make it accuracy Purpose The overall purpose of this study is to establish some improvements of the available valuation method currently applied in Vietnam stock market The aim is to expose some weaknesses of the method and the reasons behind Further, the study will be TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM conducted to find solutions of these problems This will be accomplished by a literature study and a subsequent case study Methodology The Thesis uses quantitative and qualitative approach and includes statements that will give the reader an insight in, how the research area was approached, why it was conducted in this way, how the work progressed, and, finally, the authors own critical opinions of the study The intention is to introduce the reader to how the study was conducted as well as a give the opportunity to develop a personal perception concerning the trustworthiness of the study Outline of the Study In the second part of this thesis the literature study will be conducted The study helps to understand the core concepts and the basic theories of valuation as well as the basic understanding of stock market and value of a thing It also contains a brief introduction of the development of Vietnam stock market and valuation history in Vietnam That information is necessary for the discussion to valuation in practice The third part of the thesis is the case study of SAM company In this we try to use different approach of valuation to find solutions for value of SAM By understanding different methods, we can understand difficulties with each valuation we applied and can work out to find ways to increase the accuracy of valuation The final part of the thesis is concerned with recommendations and conclusions of how the valuation process can be improved and what should be adjusted to increase the usefulness and accuracy of the valuation process involved in Vietnam stock market TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 34860 32000 29820 29520 28000 26500 25100 25900 26800 28300 27940 27980 28480 29500 29200 29800 29900 30140 29700 235.382 218.582 207.17 205.274 196.776 188.346 183.696 189.612 192.27 202.01 199.796 198.992 203.618 211.122 209.456 209.152 207.59 205.606 204.444 -6.94% -8.20% -6.81% -1.01% -5.15% -5.36% -5.28% 3.19% 3.47% 5.60% -1.27% 0.14% 1.79% 3.58% -1.02% 2.05% 0.34% 0.80% -1.46% -7.21% -7.14% -5.22% -0.92% -4.14% -4.28% -2.47% 3.22% 1.40% 5.07% -1.10% -0.40% 2.32% 3.69% -0.79% -0.15% -0.75% -0.96% -0.57% 62 28700 200.05 -3.37% -2.15% 63 28300 197.048 -1.39% -1.50% 64 29020 200.002 2.54% 1.50% 65 28700 198.842 -1.10% -0.58% 66 28160 195.822 -1.88% -1.52% 67 28820 194.674 2.34% -0.59% 68 30220 196.516 4.86% 0.95% 69 30540 194.104 1.06% -1.23% 70 30460 190.416 -0.26% -1.90% 71 30420 191.43 -0.13% 0.53% 72 30640 190.264 0.72% -0.61% 73 30880 190.934 0.78% 0.35% 74 30680 189.466 -0.65% -0.77% 75 30380 185.81 -0.98% -1.93% 76 30100 182.042 -0.92% -2.03% 77 30120 182.766 0.07% 0.40% 78 29640 179.802 -1.59% -1.62% 79 29900 179.832 0.88% 0.02% 80 30140 178.98 0.80% -0.47% 81 30300 177.858 0.53% -0.63% 82 29860 175.186 -1.45% -1.50% 83 29780 175.456 -0.27% 0.15% 84 30000 175.812 0.74% 0.20% 55 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM 85 30180 176.906 0.60% 0.62% 86 30920 184.284 2.45% 4.17% 87 30780 184.11 -0.45% -0.09% 88 30960 185.436 0.58% 0.72% 89 30740 183.81 -0.71% -0.88% 90 30700 182.708 -0.13% -0.60% 91 30660 179.21 -0.13% -1.91% 92 30120 174.26 -1.76% -2.76% 93 29820 171.78 -1.00% -1.42% 94 29200 168.378 -2.08% -1.98% 95 29400 167.35 0.68% -0.61% 96 28640 164.958 -2.59% -1.43% 97 27060 164.744 -5.52% -0.13% 98 19280 162.655 -28.75% -1.27% 99 18800 158.784 -2.49% -2.38% 100 18540 153.314 -1.38% -3.44% 101 18000 145.938 -2.91% -4.81% 102 18520 148.18 2.89% 1.54% 103 18560 149.286 0.22% 0.75% 104 18980 152.332 2.26% 2.04% 105 19300 152.75 1.69% 0.27% 106 19680 156.748 1.97% 2.62% 107 19680 155.792 0.00% -0.61% 108 19400 152.96 -1.42% -1.82% 109 19320 152.112 -0.41% -0.55% 110 19340 151.94 0.10% -0.11% 111 19400 152.104 0.31% 0.11% 112 19420 151.956 0.10% -0.10% 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 19700 19700 19660 19580 19500 19200 19140 18540 18400 18600 18540 18400 18380 18280 18060 152.282 152.028 150.984 150.166 149.122 145.16 141.86 142.678 142.262 142.33 141.588 140.348 140.256 139.326 137.97 1.44% 0.00% -0.20% -0.41% -0.41% -1.54% -0.31% -3.13% -0.76% 1.09% -0.32% -0.76% -0.11% -0.54% -1.20% 0.21% -0.17% -0.69% -0.54% -0.70% -2.66% -2.27% 0.58% -0.29% 0.05% -0.52% -0.88% -0.07% -0.66% -0.97% 56 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 17800 17140 16720 17640 18700 20060 21140 21180 20720 21400 21360 21400 21980 23240 26740 27480 28660 32180 36660 39220 39160 38960 40920 43760 39460 38580 38560 38820 38680 38780 38800 38380 38200 38640 38400 38380 38220 38060 38060 37800 37300 35580 36220 37660 37420 37180 37180 37140 37220 37060 36560 135.722 133.226 132.42 136.078 141.476 153.572 162.644 164.176 161.906 165.864 166.892 166.752 172.086 180.728 206.456 212.512 216.19 237.262 260.076 264.71 261.436 260.608 268.696 274.528 259.304 255.384 259.242 263.166 260.538 261.078 257.31 251.784 247.08 251.346 249.58 249.098 247.296 244.43 244.204 239.056 234.006 222.408 223.386 232.552 232.432 230.71 231.522 230.614 232.588 232.584 231.976 -1.44% -3.71% -2.45% 5.50% 6.01% 7.27% 5.38% 0.19% -2.17% 3.28% -0.19% 0.19% 2.71% 5.73% 15.06% 2.77% 4.29% 12.28% 13.92% 6.98% -0.15% -0.51% 5.03% 6.94% -9.83% -2.23% -0.05% 0.67% -0.36% 0.26% 0.05% -1.08% -0.47% 1.15% -0.62% -0.05% -0.42% -0.42% 0.00% -0.68% -1.32% -4.61% 1.80% 3.98% -0.64% -0.64% 0.00% -0.11% 0.22% -0.43% -1.35% -1.63% -1.84% -0.60% 2.76% 3.97% 8.55% 5.91% 0.94% -1.38% 2.44% 0.62% -0.08% 3.20% 5.02% 14.24% 2.93% 1.73% 9.75% 9.62% 1.78% -1.24% -0.32% 3.10% 2.17% -5.55% -1.51% 1.51% 1.51% -1.00% 0.21% -1.44% -2.15% -1.87% 1.73% -0.70% -0.19% -0.72% -1.16% -0.09% -2.11% -2.11% -4.96% 0.44% 4.10% -0.05% -0.74% 0.35% -0.39% 0.86% 0.00% -0.26% 57 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 36780 36360 36160 35920 35520 35140 35880 36440 36680 36900 37240 37120 37040 37100 36300 36360 36240 36520 36840 36600 37020 38000 37760 37800 37560 37560 37580 37620 37380 37600 38240 38380 38420 38500 38200 38260 38260 37900 37920 38040 38380 37640 37260 38560 39020 39180 40780 40580 43100 45780 49380 234.452 233.106 231.214 227.902 225.21 222.322 229.46 229.974 232.72 237.214 238.216 235.25 235.31 234.91 233.716 234.468 233.658 234.906 237.494 237.174 239.626 246.474 245.668 246.056 245.868 246.064 245.418 243.954 242.242 243.446 244.508 246.416 246.102 246.66 246.208 247.21 249.164 248.212 245.188 247.802 249.428 247.936 248.152 253.766 258.654 264.774 279.252 278.988 287.128 295.728 307.504 0.60% -1.14% -0.55% -0.66% -1.11% -1.07% 2.11% 1.56% 0.66% 0.60% 0.92% -0.32% -0.22% 0.16% -2.16% 0.17% -0.33% 0.77% 0.88% -0.65% 1.15% 2.65% -0.63% 0.11% -0.63% 0.00% 0.05% 0.11% -0.64% 0.59% 1.70% 0.37% 0.10% 0.21% -0.78% 0.16% 0.00% -0.94% 0.05% 0.32% 0.89% -1.93% -1.01% 3.49% 1.19% 0.41% 4.08% -0.49% 6.21% 6.22% 7.86% 1.07% -0.57% -0.81% -1.43% -1.18% -1.28% 3.21% 0.22% 1.19% 1.93% 0.42% -1.25% 0.03% -0.17% -0.51% 0.32% -0.35% 0.53% 1.10% -0.13% 1.03% 2.86% -0.33% 0.16% -0.08% 0.08% -0.26% -0.60% -0.70% 0.50% 0.44% 0.78% -0.13% 0.23% -0.18% 0.41% 0.79% -0.38% -1.22% 1.07% 0.66% -0.60% 0.09% 2.26% 1.93% 2.37% 5.47% -0.09% 2.92% 3.00% 3.98% 58 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 48800 50280 49760 48820 47400 47580 47700 47200 46960 47160 46820 47940 44820 42880 47120 51900 58600 61900 67700 73800 71800 76600 79400 86900 94100 96600 90900 92900 92300 91700 94500 94600 90900 90500 89300 89600 88400 82700 74200 75600 85200 71500 73800 78200 77600 78100 78300 83300 81800 83400 83900 303.78 315.428 320.272 315.44 307.416 310.36 313.268 315.424 310.634 308.26 306.178 306.262 309.886 314.876 325.19 346.98 375.418 407.152 416.466 443.962 460.862 500.1 533.502 555.602 596.034 604.88 555.662 567.874 551.452 536.558 546.194 544.0375 509.424 507.05 505.69 505.704 487.26 452.284 416.876 431.008 465.58 478.408 486.506 511.668 507.49 513.352 522.006 536.534 527.752 523.328 524.39 -1.17% 3.03% -1.03% -1.89% -2.91% 0.38% 0.25% -1.05% -0.51% 0.43% -0.72% 2.39% -6.51% -4.33% 9.89% 10.14% 12.91% 5.63% 9.37% 9.01% -2.71% 6.69% 3.66% 9.45% 8.29% 2.66% -5.90% 2.20% -0.65% -0.65% 3.05% 0.11% -3.91% -0.44% -1.33% 0.34% -1.34% -6.45% -10.28% 1.89% 12.70% -16.08% 3.22% 5.96% -0.77% 0.64% 0.26% 6.39% -1.80% 1.96% 0.60% -1.21% 3.83% 1.54% -1.51% -2.54% 0.96% 0.94% 0.69% -1.52% -0.76% -0.68% 0.03% 1.18% 1.61% 3.28% 6.70% 8.20% 8.45% 2.29% 6.60% 3.81% 8.51% 6.68% 4.14% 7.28% 1.48% -8.14% 2.20% -2.89% -2.70% 1.80% -0.39% -6.36% -0.47% -0.27% 0.00% -3.65% -7.18% -7.83% 3.39% 8.02% 2.76% 1.69% 5.17% -0.82% 1.16% 1.69% 2.78% -1.64% -0.84% 0.20% 59 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM APPENDIX SAM’s historical Balance Sheets Accounts ASSETS Current Assets Cash and Cash Eqv S.Term Marketable Secs Accounts Receivable Inventory Other Current Assets Total Current Assets 2003 2004 2005 2006 4,632,156,971 27,319,688,684 172,690,391,343 43,904,416,988 83,823,821,661 68,446,719,532 3,652,470,081 160,555,168,245 95,070,761,186 165,312,210,790 3,794,285,410 291,496,946,070 182,516,899,942 299,238,501,230 4,606,287,154 659,052,079,669 756,207,964,297 615,149,499,497 915,948,680 1,416,177,829,462 92,307,710,900 91,237,003,400 163,928,612,528 (72,691,609,128) 0 1,070,707,500 2,379,350,000 (1,308,642,500) 71,428,719,909 59,343,339,909 172,894,213,749 (113,550,873,840) 0 12,085,380,000 13,512,990,000 (1,427,610,000) 78,884,014,615 77,932,274,615 221,063,412,304 (143,131,137,689) 0 951,740,000 2,379,350,000 (1,427,610,000) 75,313,883,972 64,119,195,172 259,651,081,654 (195,531,886,482) 10,242,948,800 11,133,640,000 (890,691,200) 951,740,000 2,379,350,000 (1,427,610,000) 7,210,705,152 874,445,000 14,291,208,864 44,250,261,174 99,676,826,976 66,000,019,169 265,749,684,450 291,760,795 100,392,861,052 260,948,029,297 129,970,189,947 421,467,136,017 244,560,860,760 903,612,940,429 341,355,329,217 1,757,533,158,679 0 0 Fixed Assets and Longterm Investments Fixed Assets Tangible Fixed Assets At cost Accumulated Depreciation Financial Lease fixed assets At cost Accumulated Depreciation Intangible Fixed Assets At cost Accumulated Amortisation Long term financial investments Other Fixed Assets Total Fixed Assets and L/T Investments TOTAL ASSETS Liabilities and Share holder's Equity Current liabilities Short-term borrowings Current portion of long term debts Trade creditors Dividends payable Other liabilities Total Current Liabilities Long-term liabilities Long-term Borrowings/debts Other Long-term Liabilities 89,559,528,020 210,620,945,165 988,917,797,336 11,419,396,834 22,058,907,687 33,478,3\04,521 20,524,261,737 38,463,442,720 148,547,232,477 57,520,757,077 79,850,672,443 347,992,374,685 0 0 988,917,797,336 30,696,618,099 0 11,505,233,504 15,681,817,293 30,696,618,099 60 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM Total Long-term Liabilities Total Liabilities Shareholder's Equity Operating Capital Preferred Equity Differences from asset revaluation Exchange rate differences Retained Earnings Other Reserves Total Shareholder's Equity Total Liabilities and Shareholder's Equity 11,505,233,504 44,983,538,025 15,681,817,293 164,229,049,770 347,992,374,685 30,696,618,099 1,019,614,415,435 180,000,000,000 180,000,000,000 418,140,000,000 558,540,000,000 0 362,419,668 27,200,672,334 8,401,399,270 0 77,238,086,247 0 137,480,565,744 0 179,378,743,244 215,964,491,272 257,238,086,247 555,620,565,744 737,918,743,244 260,948,029,297 421,467,136,017 903,612,940,429 1,757,533,158,679 61 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM (LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM(LUAN.van.THAC.si).stock.valuation.in.vietnam.theory practice.and.recommendation.the.case.SACOM