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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Boston Beer Co Inc. To summarize, we found that Boston Beer Co Inc ranked in the 14th 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. The most interesting components of our discounted cash flow analysis for Boston Beer Co Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 99. Notably, its equity weight is greater than 95.61% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than just 3.66% of the free cash flow producing stocks we're observing.
SAM'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 53.57% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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It's been a terrible start to the year for the Brewers industry group on balance, with the index down significantly year to date, with its two main constituents Anheuser-Busch (BUD) and Molson Coors (TAP) putting up lifeless returns, down over 20%. Fortunately, for Boston Beer (SAM) investors, the company has...
Boston Beer Company (SAM) is on a market tear of late, outpacing its 200-day trading average (blue line) by a substantial margin. The company’s CAGR since December 2010 clocks in at an impressive 10.42%. Gross profit annualizes out at a robust 9.17% while its operating income for the period comes...
Shares of Sam Adams' parent Boston Beer Company Inc (NYSE: SAM ) are up in 2020 and not strictly due to beer sales, Cowen analyst Vivien Azer said Monday on CNBC's "Power Lunch." Hard Seltzer: Hard seltzer has become a hot-selling alcoholic beverage item that is lifting Boston Beer's stock higher amid higher sales. But the strength in the non-beer category is trickling to other areas of the company. Azer said Boston Beer spends 30% of its revenue on advertising and marketing campaigns and this is nearly three times as much as other rival beer companies. But the surge in revenue … Full story available on Benzinga.com