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:
Below please find a table outlining a discounted cash flow forecast for BUD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Anheuser-Busch InBev SA ranked in the 47th percentile in terms of potential gain offered. The most interesting components of our discounted cash flow analysis for Anheuser-Busch InBev SA ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 46. Its equity weight surpasses that of merely 18.54% of free cash flow generating stocks in the Consumer Defensive sector.
Its compound free cash flow growth rate, as measured over the past 5.01 years, is -0.03% -- higher than only 24.33% 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 2.97% 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 CPB, UTI, POST, HSY, and LW.
Shares of Anheuser-Busch InBev (NYSE: BUD) fell 39.7% over the first six months of 2020, according to data from S&P Global Market Intelligence, versus a 3% loss for the S&P 500 index. Part of Anheuser-Busch's problem is that beer consumption remains on the decline in the U.S. Consumer preferences overseas aren't shifting so dramatically, but the domestic market is the company's largest. While the brewer is participating in the hard seltzer trend — one of the fastest-growing segments in alcohol — it trails far behind the category's leaders, like Mark Anthony Brands' White Claw and Boston Beer's Truly.