Fomento Económico Mexicano, S.A.B. de C.V.

BMV:FEMSA UBD Stock Report

Market Cap: Mex$609.8b

Fomento Económico Mexicano. de Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 FEMSA UBD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FEMSA UBD (MX$183.79) is trading below our estimate of fair value (MX$314.61)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FEMSA UBD?

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

The above table shows the Price to Earnings ratio for FEMSA UBD. This is calculated by dividing FEMSA UBD's market cap by their current earnings.
What is FEMSA UBD's PE Ratio?
PE Ratio21.2x
EarningsMex$30.99b
Market CapMex$609.76b

Price to Earnings Ratio vs Peers

How does FEMSA UBD's PE Ratio compare to its peers?

The above table shows the PE ratio for FEMSA UBD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.9x
AC * Arca Continental. de
15.3x8.0%Mex$288.2b
BIMBO A Grupo Bimbo. de
21.5x14.6%Mex$272.8b
CUERVO * Becle. de
21.3x21.1%Mex$92.8b
CULTIBA B Organización Cultiba. de
5.4xn/aMex$6.9b
FEMSA UBD Fomento Económico Mexicano. de
21.2x8.6%Mex$609.8b

Price-To-Earnings vs Peers: FEMSA UBD is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the peer average (15.9x).

Price to Earnings Ratio vs Industry

How does FEMSA UBD's PE Ratio compare vs other companies in the Global Beverage Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
FEMSA UBD 21.2xIndustry Avg. 18.2xNo. of Companies32PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FEMSA UBD is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the Global Beverage industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is FEMSA UBD'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.

FEMSA UBD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.2x
Fair PE Ratio17.5x

Price-To-Earnings vs Fair Ratio: FEMSA UBD is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the estimated Fair Price-To-Earnings Ratio (17.5x).

Analyst Price Targets

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

The above table shows the analyst FEMSA UBD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentMex$183.79
Mex$244.89
+33.2%
12.2%Mex$305.00Mex$208.00n/a13
Nov ’25Mex$196.15
Mex$245.30
+25.1%
12.3%Mex$305.00Mex$210.00n/a12
Oct ’25Mex$194.36
Mex$249.69
+28.5%
11.9%Mex$305.00Mex$210.00n/a11
Sep ’25Mex$201.45
Mex$248.38
+23.3%
12.4%Mex$305.00Mex$200.00n/a12
Aug ’25Mex$205.76
Mex$248.38
+20.7%
12.4%Mex$305.00Mex$200.00n/a12
Jul ’25Mex$198.67
Mex$253.46
+27.6%
10.7%Mex$305.00Mex$210.00n/a10
Jun ’25Mex$194.54
Mex$257.36
+32.3%
9.4%Mex$305.00Mex$213.00n/a10
May ’25Mex$200.41
Mex$255.36
+27.4%
9.5%Mex$305.00Mex$213.00n/a10
Apr ’25Mex$215.29
Mex$256.83
+19.3%
11.2%Mex$324.00Mex$213.00n/a11
Mar ’25Mex$212.48
Mex$253.51
+19.3%
12.8%Mex$324.00Mex$200.00n/a12
Feb ’25Mex$240.05
Mex$244.05
+1.7%
13.3%Mex$299.00Mex$189.00n/a13
Jan ’25Mex$221.00
Mex$241.82
+9.4%
13.2%Mex$299.00Mex$189.00n/a13
Dec ’24Mex$218.63
Mex$241.82
+10.6%
13.2%Mex$299.00Mex$189.00n/a13
Nov ’24Mex$209.30
Mex$235.98
+12.7%
13.0%Mex$299.00Mex$189.00Mex$196.1513
Oct ’24Mex$190.33
Mex$228.79
+20.2%
11.5%Mex$286.00Mex$189.00Mex$194.3612
Sep ’24Mex$190.60
Mex$224.05
+17.5%
11.7%Mex$286.00Mex$189.00Mex$201.4511
Aug ’24Mex$189.36
Mex$218.79
+15.5%
12.3%Mex$299.00Mex$189.00Mex$205.7612
Jul ’24Mex$189.53
Mex$215.98
+14.0%
12.2%Mex$299.00Mex$189.00Mex$198.6713
Jun ’24Mex$177.72
Mex$216.44
+21.8%
12.3%Mex$299.00Mex$189.00Mex$194.5413
May ’24Mex$174.92
Mex$209.69
+19.9%
13.9%Mex$299.00Mex$181.00Mex$200.4113
Apr ’24Mex$171.80
Mex$206.64
+20.3%
14.2%Mex$299.00Mex$175.00Mex$215.2914
Mar ’24Mex$169.44
Mex$205.98
+21.6%
14.3%Mex$299.00Mex$175.00Mex$212.4814
Feb ’24Mex$163.00
Mex$186.40
+14.4%
11.0%Mex$220.00Mex$151.00Mex$240.0511
Jan ’24Mex$151.63
Mex$187.10
+23.4%
10.6%Mex$220.00Mex$151.00Mex$221.0011
Dec ’23Mex$152.19
Mex$187.10
+22.9%
10.6%Mex$220.00Mex$151.00Mex$218.6311
Nov ’23Mex$145.86
Mex$183.20
+25.6%
9.8%Mex$220.00Mex$151.00Mex$209.3011

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

Molson Coors Beverage

US$11.2b

Manufactures, markets, and sells beer and other malt beverage products under various brands in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

TAP1 *

US$943.70

7D

0%

1Y

-11.6%

Grupo Herdez. de

Mex$16.6b

A food company, engages in the manufacture, purchase, distribution, and marketing of canned and packed food products in Mexico and internationally.

HERDEZ *

Mex$51.34

7D

-1.0%

1Y

21.4%

Anheuser-Busch InBev

€104.9b

Produces, distributes, exports, markets, and sells beer and beverages.

ANB *

€1,154.66

7D

0%

1Y

n/a