THE RELATIONSHIP BETWEEN PERFORMANCE AND STOCK VALUATION OF COMPANIES LISTED ON THE STOCK EXCHANGE OF THAILAND IN THE SET100 GROUP

Abstract

The purpose of this study was to investigate the relationship between company performance and stock valuation measures of companies, specifically the Price-to-Earnings (P/E) ratio and Price-to-Sales (P/S) ratio, listed in the SET100 index of the Stock Exchange of Thailand. Secondary financial data from SETSMART for 75 companies over the period 2018-2022 were collected. The performance metrics examined included Return on Assets (ROA), Return on Equity (ROE), Cash Flow from Operations (CFO), and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). The valuation metrics comprised the Price-to-Earnings ratio, Price-to-Sales ratio, and Price-to-Book ratio. The statistical analyses were descriptive statistics, Pearson correlation, and multiple regression with 0.05 statistical significance difference. The findings revealed significant correlations between company performance and stock valuation measures listed in the SET100 index of the Stock Exchange of Thailand. There was a relationship between Return on Assets ROA and stock valuation measures regarding the Price-to-Earnings ratio, there was a relationship between ROE and stock valuation measures regarding the Price-to-Sales ratio and Price-to-Book ratio, and there was a relationship between EBITDA and stock valuation measures regarding the price-to-book ratio.