Compania Cervecerias Unidas, S.A. (CCU) Company Bio
Compania Cervecerias Unidas S.A. owns and operates brewing facilities primarily in Chile. The company offers alcoholic and nonalcoholic beer under 10 proprietary brands and 5 licensed brands; cider and spirits; and wines, as well as distributes Sol and Budweiser beer. The company was founded in 1850 and is based in Santiago, Chile.
CCU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Compania Cervecerias Unidas Sa with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Compania Cervecerias Unidas Sa ranked in the 98th percentile in terms of potential gain offered. Our DCF analysis implies the stock could yield a return of 22372.5% if fairly valued; such returns are always unlikely, though, so further investigation is likely warranted. In terms of the factors that were most noteworthy in this DCF analysis for CCU, they are:
The company has produced more trailing twelve month cash flow than 99.38% of its sector Consumer Defensive.
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than just 16.53% of the free cash flow producing stocks we're observing.
CCU's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 45.41% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BJ, NTCO, PRDO, DTEA, and SENEA can be thought of as valuation peers to CCU, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
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Key Stats Company Description Compañía Cervecerías Unidas S.A. (CCU) is a beverage producer based in Chile. It was established on January 8, 1902, following the merger of two existing breweries, one of which traces its origins back to 1850, when Mr. Joaquín Plagemann founded one of the first breweries in...
The beer industry is made up of companies specializing in the production of beer, although many of them produce other alcoholic and non-alcoholic beverages. Beverages are considered consumer staples so the beer industry may be considered a small part of the broader consumer staples sector. Beer stocks, as represented by the Consumer Staples Select Sector SPDR ETF (XLP), have underperformed the broader market, providing investors with a total return of 6.6% compared to the S&P 500's total return of 14.3% over the past 12 months. These market performance numbers and the statistics in the tables below are as of June 10.
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