Assessing AB InBev’s (ENXTBR:ABI) Valuation After Its Steady Year-to-Date Share Price Gain

Anheuser-Busch InBev (ENXTBR:ABI) has quietly outperformed the broader beer sector this year, and investors are starting to revisit the stock as a steady cash generator rather than a controversial turnaround story.

See our latest analysis for Anheuser-Busch InBev.

Despite a softer 1 day and 7 day share price return, Anheuser-Busch InBev’s roughly 9 percent year to date share price gain and modest 1 year total shareholder return suggest steady, if unspectacular, momentum as investors reassess its earnings resilience.

If you are weighing ABI against other consumer names, it might also be worth exploring fast growing stocks with high insider ownership as a way to spot the next set of under the radar compounders.

Yet with ABI trading at a hefty discount to analyst targets despite solid top line and earnings growth, the key question now is whether this is genuine undervaluation or simply the market coolly pricing in future gains.

Most Popular Narrative: 22.6% Undervalued

With the narrative fair value sitting well above ABI’s €53.06 last close, the story positions today’s price as lagging behind the company’s medium term earnings power.

The ongoing trend towards premiumization, with consumers trading up to higher end products and showing increased willingness to pay for craft, specialty, and premium brands, is contributing to higher revenue per hectoliter and improving margins, as demonstrated by strong growth of megabrands such as Corona and Michelob Ultra and sustained investment in premium and super premium portfolios.

Read the complete narrative.

Want to see how steady top line growth, rising margins, and shrinking share count combine into that upside case? The full narrative reveals the exact profitability path, valuation multiple, and revenue trajectory behind this fair value call.

Result: Fair Value of $68.58 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent volume softness in key emerging markets and AB InBev’s still-elevated leverage could quickly cap upside if macro conditions deteriorate.

Find out about the key risks to this Anheuser-Busch InBev narrative.

Build Your Own Anheuser-Busch InBev Narrative

If you see the story differently, or would rather build your own view from the numbers, you can craft a personalized narrative in minutes: Do it your way.

A great starting point for your Anheuser-Busch InBev research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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