Boston Beer Company produces and sells alcohol beverages worldwide. The company sells approximately 60 beers under the Samuel Adams or the Sam Adams brands; 11 flavored malt beverages under the Twisted Tea brand; and 10 hard cider beverages under the brand Angry Orchard, as well as approximately 20 beers under other brand names. The company was founded in 1984 and is based in Boston, Massachusetts.
SAM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SAM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Boston Beer Co Inc ranked in the 16th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 83.17%. As for the metrics that stood out in our discounted cash flow analysis of Boston Beer Co Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 312.36 -- which is good for besting 97.26% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately only 4.57% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
SAM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 53.5% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Boston Beer Co Inc? See IBA, MGPI, ATGE, BRBR, and CVGW.
The stock market moved lower on Monday, falling back from record levels. Worries about how quickly coronavirus vaccine distribution might help the U.S. economy get back to normal plagued market participants, and investors seemed ready to take profits after a big move higher last week. The Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) were down as much as 1.25%.
The Boston Beer Company, Inc. (NYSE:SAM) insider John C. Geist sold 262 shares of the business’s stock in a transaction dated Monday, January 4th. The shares were sold at an average price of $991.14, for a total value of $259,678.68. The sale was disclosed in a filing with the Securities & Exchange Commission, which can […]