* Note: Prices are in Million (M) USD.
Description:
The Molson Coors Beverage Company (TAP) is a prominent multinational brewing firm headquartered in Chicago, renowned for its expansive portfolio of esteemed beer brands, including Coors Light, Miller Lite, and Molson Canadian. With a legacy of over 200 years in the brewing industry, the company is committed to sustainability and innovation, actively responding to consumer shifts towards non-alcoholic beverages and craft offerings. Its strategic focus on adaptability, combined with a robust distribution network and strong brand equity, positions Molson Coors for sustainable long-term growth in the evolving beverage market.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $0 M
Debt : $0 M
EBITDA : $-1,507 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Consumer defensive
Industry: Beverages - brewers
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 8.62
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $823 M
Average Revenue: $6,958 M
Revenue Converted To Free Cash Flow (%): 11.8%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $11,627 M
Revenue 5 Years Ago (2019-12-31): $10,579 M
Total Growth over 5 Years: 9.9%
5-Year Revenue CAGR (Historical): 1.9%
Forward 5-Year CAGR (Tapered): 1.7%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Error: Invalid balance sheet data provided.Using default values for calculation.
Based on default values, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $5.56
Trailing 12-Month Earnings Per Share (EPS): $5.39
Average Earnings Per Share (EPS): $5.48
Dividend Per Share (DPS): $2
Payout Ratio: 34%
Dividend Yield: 4.09%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 4, 4 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Error: Invalid balance sheet data provided.Skipping ROE-based PE.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $47.21
52-Week Low: $42.50
Threshold Price (15% Above 52-Week Low): $48.88
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $9,265 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 22 points to above Molson Coors Brewing Co Class B (TAP) stock.
Last 20 Years Avg PE
11.7, Fair Value PE
15, Industry Based PE
18, Growth Based PE
15, RCFC Based PE
11.83, Risk-Free Anchored PE (25% MoS)
18.34. Based on these 6 values, average assigned is
14.98. Value-Trades has assined P/E value
14.98. An average (Current Year EPS + Next Year EPS) earning per share is
$5.4753.
Fair value using multiple P/Es (blended): $82.01 (PE 14.98 × EPS $5.48)
So the Final Fair Value is: $82.01
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $5.48
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 11.1 | $60.78 |
| 20 Yrs Avg-PE | 11.7 | $64.06 |
| Value-Trades Assigned | 14.98 | $82.02 |
