The New Valuation Model: A Case Study of SET
The new valuation model need to include the effects of technology development. This could be observed through
investors’ behavior. The sample of low price to book value on the Stock Exchange of Thailand suggest that investors have
changed from the preference of high amount of asset size to be the future cash flow expectation. The technology development
needs current year investment and return the benefits the far future.While the companies have to be carefully consider of
technology investment, the investors do not expect the higher amount of non-utilization on the balance sheets.This behavior is
different from the previous days that passive investors prefer to high level of tangible assets.
Index Terms - Book value, valuation model, technology investment