Anheuser-Busch InBev Valuation

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

BUD ($56.5) is trading below our estimate of [[fair value]] ($178.85)

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: BUD ($56.5) is trading below our estimate of fair value ($178.85)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BUD. This is calculated by dividing BUD's market cap by their current earnings.
What is BUD's PE Ratio?
PE Ratio	16.9x
Earnings	US$6.53b
Market Cap	US$110.40b

BUD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.2x
Enterprise Value/EBITDA	10.2x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

How does BUD's PE Ratio compare to its peers?

The above table shows the PE ratio for BUD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	28.2x
TAP Molson Coors Beverage	13.6x	3.3%	US$12.9b
SAM Boston Beer Company	43.9x	19.4%	US$3.6b
PEP PepsiCo	23.2x	9.1%	US$217.6b
MNST Monster Beverage	32.3x	11.6%	US$50.6b
BUD Anheuser-Busch InBev	17x	10.5%	US$105.3b

Price-To-Earnings vs Peers: BUD is good value based on its Price-To-Earnings Ratio (17x) compared to the peer average (28.2x).

Price to Earnings Ratio vs Industry

How does BUD's PE Ratio compare vs other companies in the North American Beverage Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: BUD is good value based on its Price-To-Earnings Ratio (17x) compared to the Global Beverage industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is BUD'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.

BUD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.9x
Fair PE Ratio	27.7x

Price-To-Earnings vs Fair Ratio: BUD is good value based on its Price-To-Earnings Ratio (17x) compared to the estimated Fair Price-To-Earnings Ratio (27.7x).

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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