Budweiser Brewing Company APAC Limited

DB:4BB1 Stock Report

Market Cap: €11.9b

Budweiser Brewing Company APAC Valuation

Is 4BB1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 4BB1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4BB1 (€3.16) is trading below our estimate of fair value (€12.57)

Significantly Below Fair Value: 4BB1 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4BB1?

Key metric: As 4BB1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4BB1. This is calculated by dividing 4BB1's market cap by their current earnings.
What is 4BB1's PE Ratio?
PE Ratio17.2x
EarningsUS$719.00m
Market CapUS$12.38b

Price to Earnings Ratio vs Peers

How does 4BB1's PE Ratio compare to its peers?

The above table shows the PE ratio for 4BB1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.3x
KUL Kulmbacher Brauerei Aktien-Gesellschaft
23.3xn/a€138.4m
TAP Molson Coors Beverage
13.3x3.3%US$12.4b
168 Tsingtao Brewery
13.8x7.4%HK$84.2b
291 China Resources Beer (Holdings)
14.8x10.4%HK$82.9b
4BB1 Budweiser Brewing Company APAC
17.2x14.3%€96.4b

Price-To-Earnings vs Peers: 4BB1 is expensive based on its Price-To-Earnings Ratio (17.2x) compared to the peer average (16.4x).


Price to Earnings Ratio vs Industry

How does 4BB1's PE Ratio compare vs other companies in the European Beverage Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
4BB1 17.2xIndustry Avg. 17.3xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 4BB1 is good value based on its Price-To-Earnings Ratio (17.2x) compared to the European Beverage industry average (17.3x).


Price to Earnings Ratio vs Fair Ratio

What is 4BB1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

4BB1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.2x
Fair PE Ratio26.1x

Price-To-Earnings vs Fair Ratio: 4BB1 is good value based on its Price-To-Earnings Ratio (17.2x) compared to the estimated Fair Price-To-Earnings Ratio (26.1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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