A study on the valuation of UCBL: from the perspective of multiples method

Abstract

Internship program creates an opportunity to transform four years of academic learning of Business Administration into practical business knowledge. However, I have worked as an intern in UCB Capital Management but my internship report is about overall United Commercial Bank Limited (UCB). The main objective of this report is to evaluate the financial performance of United Commercial Bank based on ratio analysis. For the ratio analysis price to earnings, price to book value, price to sales, enterprise value to earnings before inters tax, enterprise value to earnings before interest, tax, depreciation, and amortization ratios have been used. The multiple valuation approach has been used for the ratio analysis. For stock price valuation, the market approach has been followed, which is one of the popular approaches to identify the actual stock price. Furthermore, ratio analysis results have been compared with the industry average. After analysis, it has been discovered that the share price of United Commercial Bank (UCB) is undervalued. The investor who has already brought the share of United Commercial Bank (UCB) should hold their share as the price would go up in the future. In addition, the investor who does not hold the shares of United Commercial Bank (UCB) should buy shares of United Commercial Bank (UCB), as the market price will reach the implied price due market nature.