Financial institutions, mainly banks, have been a major source of financing businesses in Cambodia. However, things may not stay the same. The inauguration of Cambodia Securities Exchanges (CSX) under the joint venture between the Ministry of Economy and Finance and Korea Exchanges (KRX) is one of the example of how financial innovations can help fund businesses .
As a Cambodian student, majoring in Financial Economics, I would like to share some basic valuation models that personal investors can use when deciding on buying a company’s stock. There is no-clear cut method in evaluating the stock price, but what we, as an investor, should do is to evaluate our chosen company with the knowledge we have rather than gamble our money.
Currently, there are only two companies listed at CSX: PPWSA and Grand Twins. Many more companies have worked on IPOs. Since the two companies have been listed not long enough, I was not able to have a concrete knowledge of its value. For this reason, I decided to choose Apple Inc., which many Cambodians know of, as the sample company and hopefully I will be able to evaluate Cambodian listed company when enough information is available to the public. Below is my sample report: