Stock price multiple is one of the most well-known equity valuation technique used to forecast equity price. It measures by multiplying “the ratio of stock price to a value driver” by a value driver. The value driver can be earning per share (EPS), sales or other financial measurements. The objective of price multiple technique is to evaluate the value of assets and compare how similar assets are priced in the market. Although stock price multiple technique is common in financial filed, studies on the application of the technique in Thailand is still limited. The present study is conducted to serve three major objectives. The first objective is to apply the technique to measure value of firms in banking sector in the Stock Exchange of Thailand. The second objective is to develop composite price multiple index to forecast equity prices. The third objective is to compare valuation accuracy of different value drivers of price multiple (i.e. EPS, Earnings Growth, Earnings Before Interest Taxes Depreciation and Amortization, Sales, Book Value and Composite Index) in forecasting equity prices. Results indicated that EPS is the most accurate value drivers of price multiple used to forecast equity price of firms in baking sector.

Abstract
 1. Introduction
 2. Literature Review
 3. Research Methods and Materials
    3.1. Collection of Data
    3.2. Measurements of Variables
    3.3. Procedure
    3.4. Composite Index of Price Multiple Valuations
    3.5. Measurements of Valuation Accuracy
 4. Results and Discussion
 5. Conclusions, Implications, Limitations and Suggestions
 References

• Pisal YOOYANYONG(Senior Business Development Manager, Business Development & Engineering Department, DSV Solutions Limited) Corresponding Author
• Issara SUWANRAGSA(Martin de Tours School of Management and Economics Department, Business Administration, Assumption University)
• Nopphon TANGJITPROM(Martin de Tours School of Management and Economics Department, Business Administration, Assumption University)