Anheuser-Busch Inbev SA Sponsored ADR (Belgium) (BUD) Company Bio
Anheuser Busch InBev is the global leader in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. The company was founded in 1366 and is based in Leuven, Belgium.
BUD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Anheuser-Busch InBev SA with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Anheuser-Busch InBev SA ranked in the 43th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for BUD, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 46. Notably, its equity weight is greater than just 14.3% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.01 years, is -0.03% -- higher than just 20.67% of stocks in our DCF forecasting set.
Anheuser-Busch InBev SA's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 1.81% of tickers in our DCF set.
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 BUD, try FLO, LFVN, FIZZ, JBSS, and HSY.
In some ways, I think Constellation Brands (STZ) is the opposite of Molson Coors (TAP), a stock I wrote about recently. While Molson Coors has largely kept playing the hand it has, hoping to somehow generate better results by repositioning brands in fading categories, Constellation has used aggressive portfolio transformation...
Stephen Simpson, CFA on Seeking Alpha | September 24, 2020
Shares of The Boston Beer Company (SAM) are up a staggering 130% year to date. The business has been buoyed by the popularity of its hard seltzer brand, Truly. It's estimated that Truly is the second largest player in the space with 21.8% market share, far behind the leader, White...
Joseph Kowaleski on Seeking Alpha | September 23, 2020
Budweiser and its parent company Anheuser-Busch Inbev announced Wednesday it will award 30 scholarships annually over the next five years aimed at growing more Black representation in the beer brewing industry. The beer brewer will partner with the United Negro College Fund (UNCF) to award the scholarships, which will be named after Natalie Johnson, the first female Black brewmaster for Anheuser-Busch, who serves as the company's brewing director for North America.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Ambev S.A. New York, September 22, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Ambev S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.