* Note: Prices are in Million (M) USD.
Description:
The Molson Coors Beverage Company, commonly known as Molson Coors, is a multinational drink and brewing company headquartered in Chicago in the United States.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $614 M
Debt : $6,319 M
EBITDA : $2,477 M
Net Debt (Debt - Cash): $5,706 M
Since Net Debt is covered by EBITDA within 3 years, 1 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: 9.01
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: $822 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 4 Years Ago (2020-12-31): $9,654 M
Last 5 Years Average Revenue Growth: 4%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $210 M
Share Count 5 Years Ago (2020-12-31): $217 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $5.70
Trailing 12-Month Earnings Per Share (EPS): $5.45
Average Earnings Per Share (EPS): $5.58
Dividend Per Share (DPS): $2
Payout Ratio: 33%
Dividend Yield: 4%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 6.3%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $50
52-Week Low: $47
Threshold Price (15% Above 52-Week Low): $54
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $10,172 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 27 points to above Molson Coors Brewing Co Class B (TAP) stock.
Last 20 Years Avg PE 17.4, Fair Value PE 15, Industry Based PE 18, Growth Based PE 4, RCFC Based PE 19.45, ROE Based PE 15.05, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 15.14. Value-Trades has assined P/E value 15.14. Since an average (Current Year EPS + Next Year EPS) earning per share is $5.575.
The fair value of Molson Coors Brewing Co Class B (TAP) stock should be (15.14 x $5.575) = $84.41.
