Boston Beer Stock Fair Value Calculation – Explore the Possibility of Investing in The Boston Beer Company, at US$345
December 10, 2023
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It is best known for its beer products, which include Samuel Adams, Angry Orchard, and Twisted Tea. For potential investors interested in investing in The Boston Beer ($NYSE:SAM) Company, Inc. at US$345, it is important to consider both the financial performance of the company and the outlook for future growth.
Additionally, the company has also posted positive free cash flow and earnings per share growth over the same period. In terms of future growth prospects, analysts expect The Boston Beer Company to continue to benefit from its strong brand recognition as well as its focus on innovation and new product development. Overall, for investors considering investing in The Boston Beer Company, Inc. at US$345, there appears to be a reasonable amount of upside potential, provided that the company can continue to leverage its strong brand recognition and innovate its product portfolio. As such, investors may find the current valuation of The Boston Beer Company to be attractive at this point in time.
Market Price
BOSTON BEER opened at $342.2 and closed at $340.9, representing an increase of 0.5% from the previous closing price of $339.0. This modest gain reflects the current market sentiment around BOSTON BEER and should be taken into consideration when assessing the risk of investing in the company. Investors should also review other factors such as the company’s financials, competitive landscape, industry trends, and management team before making an investment decision. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Boston Beer. More…
| Total Revenues | Net Income | Net Margin |
| 2.06k | 82.96 | 4.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Boston Beer. More…
| Operations | Investing | Financing |
| 207.39 | -65.77 | -52.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Boston Beer. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.52k | 396.11 | 91.93 |
Key Ratios Snapshot
Some of the financial key ratios for Boston Beer are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.4% | -16.3% | 6.4% |
| FCF Margin | ROE | ROA |
| 6.7% | 7.4% | 5.4% |
Analysis – Boston Beer Stock Fair Value Calculation
At GoodWhale, we conducted an analysis of BOSTON BEER‘s wellbeing. After careful study of the company’s financials, we calculated the intrinsic value of BOSTON BEER share to be around $541.0 through our proprietary Valuation Line. This means that right now, BOSTON BEER stock is traded at $340.9 – which is undervalued by 37.0%. We believe that this presents an opportunity for investors to gain exposure to a potentially profitable stock. More…
Peers
Boston Beer Co Inc is a leading American brewer that manufactures and sells beer and cider under the Samuel Adams, Angry Orchard, and Twisted Tea brands. The company competes with Anheuser-Busch InBev SA/NV, Molson Coors Beverage Co, and Constellation Brands Inc.
– Anheuser-Busch InBev SA/NV ($LTS:0RJI)
Anheuser-Busch InBev SA/NV, a Belgian-Brazilian multinational beverage and brewing company, is the world’s largest brewer. The company was formed through successive mergers of three international brewing groups: Interbrew from Belgium, AmBev from Brazil and Anheuser-Busch from the United States. It has a primary listing on the Euronext Brussels stock exchange and is a component of the Euro Stoxx 50 stock market index.
As of 2019, Anheuser-Busch InBev’s net sales totaled US$52.5 billion, with a gross profit of US$24.2 billion. The company’s operating income totaled US$11.9 billion, and its net income was US$9.3 billion. Its head office is in Leuven, Belgium.
– Molson Coors Beverage Co ($NYSE:TAP)
Molson Coors Beverage Co is a publicly traded company that operates in the brewing industry. The company has a market cap of 10.5B as of 2022 and a Return on Equity of 5.05%. The company’s primary operations are in the United States, Canada, and the United Kingdom. Molson Coors Brewing Company was founded in 1873 by John Molson in Montreal, Canada. The company produces a variety of beer brands including Coors Light, Miller Lite, Molson Canadian, and Carling.
– Constellation Brands Inc ($NYSE:STZ)
Constellation Brands Inc is a leading international producer and marketer of beer, wine and spirits with operations in the U.S., Canada, Mexico, Europe and Asia. The company’s products include some of the world’s best-known brands, such as Corona, Modelo Especial, Ballast Point and SVEDKA Vodka, as well as innovative new products such as High West Whiskey. Constellation Brands is dedicated to delivering exceptional service to its customers and driving sustainable growth for its shareholders.
Summary
The Boston Beer Company, Inc. (NYSE: SAM) is an attractive investment opportunity at its current US$345 price. The company has seen consistent growth in revenue and profits over the past decade, indicating a strong financial position and making it a reliable long-term stock. Furthermore, the company is also well-positioned to capitalize on the growth of the craft beer industry due to its strong brand recognition and loyal customer base. All in all, Boston Beer has a solid foundation for long-term growth and is an attractive investment opportunity.
