Monster Beverage Intrinsic Value Calculation – Monster Beverage Corp. Shares Take a Minor Hit in Volatile Monday Trading Session
March 27, 2024
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Monster Beverage ($NASDAQ:MNST) Corp. is a leading energy drink company known for its popular brand, Monster Energy.
However, on Monday, the company’s stock took a minor hit in a volatile trading session for the stock market. This downward trend caused Monster Beverage Corp.’s shares to drop by 0.69% to $59.09. This minor decline in stock price is likely a result of the ongoing volatility and uncertainty in the market due to various factors such as the ongoing trade tensions between the US and China, concerns about rising interest rates, and global economic instability. Despite this recent dip, Monster Beverage Corp.’s stock has had a strong performance overall this year.
Additionally, Monster Beverage Corp. has been expanding its portfolio beyond just energy drinks, with investments in other beverage categories such as coffee and water. This diversification strategy could potentially contribute to the company’s long-term growth and stability. While this minor hit in trading may be concerning for some investors, it is important to keep in mind the overall positive trajectory of Monster Beverage Corp.’s stock. As always, it is essential for investors to carefully consider all factors and do thorough research before making any investment decisions.
Stock Price
The stock opened at $59.6 and closed at $59.1, representing a decrease of 0.7% from its previous closing price of $59.5. This uncertainty and unpredictability in the market often leads to fluctuations in stock prices, even for well-established companies like Monster Beverage. This minor decline on Monday may simply be a temporary blip in an otherwise upward trend. Furthermore, the dip in stock price does not seem to be driven by any specific news or events related to Monster Beverage.
The company has not made any major announcements or faced any significant challenges that would warrant such a drop in stock price. Overall, while the slight decrease in stock price may be concerning to some investors, it is important to keep in mind the broader context of market volatility and the company’s overall performance. Monster Beverage remains a strong and successful player in the beverage industry, and this minor hit in the stock market is unlikely to have a long-term impact on its growth and profitability. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Monster Beverage. More…
| Total Revenues | Net Income | Net Margin |
| 7.14k | 1.63k | 22.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Monster Beverage. More…
| Operations | Investing | Financing |
| 1.72k | -193.4 | -542.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Monster Beverage. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.69k | 1.46k | 7.9 |
Key Ratios Snapshot
Some of the financial key ratios for Monster Beverage are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.8% | 6.1% | 27.4% |
| FCF Margin | ROE | ROA |
| 20.8% | 15.2% | 12.6% |
Analysis – Monster Beverage Intrinsic Value Calculation
After conducting thorough analysis of MONSTER BEVERAGE‘s fundamentals, I have determined that the intrinsic value of the company’s shares is around $57.4. This was calculated using our proprietary Valuation Line, which takes into account various financial metrics and market conditions. Currently, MONSTER BEVERAGE’s stock is trading at $59.1, which puts it at a fair price but slightly overvalued by 3.0%. This means that based on our calculations, the stock is slightly more expensive than its true value. However, it is important to note that intrinsic value is not the only factor to consider when investing in a company. Other factors such as market trends, competition, and overall industry performance should also be taken into account. Overall, based on our analysis, MONSTER BEVERAGE appears to be fairly priced but slightly overvalued at its current trading price. As always, we recommend conducting further research and considering all factors before making any investment decisions. More…
Peers
The company’s primary competitors include EQ Labs Inc, GURU Organic Energy Corp and FBEC Worldwide Inc.
– EQ Labs Inc ($OTCPK:EQLB)
GURU Organic Energy Corp is a Canadian company that produces and sells organic energy products. The company has a market cap of 109.93 million as of 2022 and a return on equity of -19.55%. The company’s products include energy bars, energy drinks, and protein powders.
– GURU Organic Energy Corp ($TSX:GURU)
Founded in 1971, FBEC Worldwide Inc is a holding company that owns and operates businesses in the food and beverage industry. The company’s portfolio includes brands such as Fatburger, Buffalo’s Cafe, and Hurricane Grill & Wings. FBEC Worldwide Inc has a market cap of 358.24k as of 2022 and a Return on Equity of -4.07%. The company’s main focus is on franchising, licensing, and managing restaurant chains.
Summary
Shares of Monster Beverage Corp. experienced a decline of 0.69% to $59.09 on Monday, indicating a tough day for the overall stock market. This dip in stock price can be attributed to the overall negative sentiment in the market. Investors should keep a close eye on the stock and monitor any further fluctuations. It is recommended to keep a cautious approach towards investing in Monster Beverage Corp. until the market stabilizes.
Additionally, it is advised to conduct thorough research and analysis of the company’s financials before making any investment decisions.
