Primo Brands Corporation

NYSE:PRMB Stock Report

Market Cap: US$10.7b

Primo Brands Valuation

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

Below Fair Value: PRMB ($28.31) is trading below our estimate of fair value ($54.36)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PRMB. This is calculated by dividing PRMB's market cap by their current earnings.
What is PRMB's PE Ratio?
PE Ratio75.6x
EarningsUS$141.90m
Market CapUS$10.73b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PRMB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.5x
COKE Coca-Cola Consolidated
20.5xn/aUS$10.7b
KOF Coca-Cola FEMSA. de
15.3x12.1%US$16.5b
CELH Celsius Holdings
38.2x22.1%US$6.4b
FIZZ National Beverage
24.1xn/aUS$4.4b
PRMB Primo Brands
75.6x88.6%US$10.7b

Price-To-Earnings vs Peers: PRMB is expensive based on its Price-To-Earnings Ratio (75.6x) compared to the peer average (24.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PRMB 75.6xIndustry Avg. 17.9xNo. of Companies3PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PRMB is expensive based on its Price-To-Earnings Ratio (75.6x) compared to the Global Beverage industry average (17.9x).


Price to Earnings Ratio vs Fair Ratio

What is PRMB'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.

PRMB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio75.6x
Fair PE Ratio99.2x

Price-To-Earnings vs Fair Ratio: PRMB is good value based on its Price-To-Earnings Ratio (75.6x) compared to the estimated Fair Price-To-Earnings Ratio (99.2x).


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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