Craft Brew Alliance Inc. engages in brewing and selling craft beers and ciders under the Kona, Widmer Brothers, Redhook, Omission, and Square Mile brand names in the United States. The company was founded in 1981 and is based in Portland, Oregon.
BREW 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 Craft Brew Alliance Inc. To summarize, we found that Craft Brew Alliance Inc ranked in the 0th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 100%. As for the metrics that stood out in our discounted cash flow analysis of Craft Brew Alliance Inc, consider:
In the past 5.75 years, Craft Brew Alliance Inc has a compound free cash flow growth rate of -0.3%; that's higher than only 2.33% of free cash flow generating stocks in the Consumer Defensive sector.
Craft Brew Alliance Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -4.25. This coverage rate is greater than that of only 12.38% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BREW, try ARCE, ONE, HAIN, BGS, and COTY.
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Cowen analyst Vivien Azer thinks the willingness of Craft Brew Alliance (BREW) to sell the Kona Hawaii business could get the merger with Anheuser-Busch InBev (BUD) to the finish line. "With ABI + BREW addressing proactively the DOJ's principle concerns, not just in words (e.g., deal terms), but in action...