Ambev S.A. American Depositary Shares (Each representing 1 Common Share) (ABEV) Company Bio
Ambev produces, distributes, and sells beer, draft beer, soft drinks, other non-alcoholic beverages, malt, and food in the Americas. The company operates through Latin America North, Latin America South, and Canada segments. The company was founded in 1885 and is based in Sao Paulo, Brazil.
ABEV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Ambev Sa. To summarize, we found that Ambev Sa ranked in the 73th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 221.83% on a DCF basis. The most interesting components of our discounted cash flow analysis for Ambev Sa ended up being:
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than just 6.43% of the free cash flow producing stocks we're observing.
As a business, Ambev Sa experienced a tax rate of about 4% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than just 18.92% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
COKE, BIG, WBA, SFM, and FARM can be thought of as valuation peers to ABEV, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Today with us, we have Mr. Jean Jereissati, CEO for Ambev, and Mr. Lucas Lira, CFO and Investor Relations Officer. Forward-looking statements are based on the beliefs and assumptions of Ambev's management and on information currently available to the company. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Ambev and could cause the results to differ materially from those expressed in such forward-looking statements.