Intrinsic value of Anheuser-Busch InBev ADR - BUD

Previous Close

$92.04

  Intrinsic Value

$4,987

stock screener

  Rating & Target

str. buy

+999%

Previous close

$92.04

 
Intrinsic value

$4,987

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of BUD stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 9.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  24.00
  22.10
  20.39
  18.85
  17.47
  16.22
  15.10
  14.09
  13.18
  12.36
  11.62
  10.96
  10.37
  9.83
  9.35
  8.91
  8.52
  8.17
  7.85
  7.57
  7.31
  7.08
  6.87
  6.68
  6.52
  6.36
  6.23
  6.10
  5.99
  5.89
Revenue, $m
  69,991
  85,458
  102,883
  122,278
  143,635
  166,932
  192,134
  219,201
  248,089
  278,756
  311,161
  345,271
  381,063
  418,519
  457,637
  498,421
  540,890
  585,073
  631,012
  678,759
  728,375
  779,937
  833,527
  889,239
  947,178
  1,007,457
  1,070,197
  1,135,531
  1,203,599
  1,274,550
Variable operating expenses, $m
  38,141
  42,441
  47,286
  52,678
  58,616
  65,093
  72,100
  79,625
  87,657
  96,183
  86,511
  95,995
  105,946
  116,360
  127,236
  138,575
  150,382
  162,667
  175,439
  188,714
  202,509
  216,844
  231,744
  247,233
  263,342
  280,101
  297,545
  315,709
  334,634
  354,360
Fixed operating expenses, $m
  5,124
  5,237
  5,352
  5,470
  5,590
  5,713
  5,839
  5,967
  6,099
  6,233
  6,370
  6,510
  6,653
  6,800
  6,949
  7,102
  7,259
  7,418
  7,581
  7,748
  7,919
  8,093
  8,271
  8,453
  8,639
  8,829
  9,023
  9,222
  9,425
  9,632
Total operating expenses, $m
  43,265
  47,678
  52,638
  58,148
  64,206
  70,806
  77,939
  85,592
  93,756
  102,416
  92,881
  102,505
  112,599
  123,160
  134,185
  145,677
  157,641
  170,085
  183,020
  196,462
  210,428
  224,937
  240,015
  255,686
  271,981
  288,930
  306,568
  324,931
  344,059
  363,992
Operating income, $m
  26,726
  37,780
  50,245
  64,130
  79,429
  96,125
  114,195
  133,608
  154,333
  176,339
  218,279
  242,766
  268,463
  295,360
  323,452
  352,744
  383,249
  414,989
  447,992
  482,297
  517,948
  555,000
  593,512
  633,553
  675,198
  718,527
  763,630
  810,600
  859,541
  910,558
EBITDA, $m
  50,309
  62,447
  76,132
  91,375
  108,169
  126,497
  146,332
  167,641
  190,389
  214,543
  240,071
  266,947
  295,150
  324,670
  355,501
  387,650
  421,129
  455,963
  492,184
  529,832
  568,959
  609,622
  651,887
  695,830
  741,532
  789,083
  838,579
  890,125
  943,833
  999,819
Interest expense (income), $m
  3,279
  6,757
  9,189
  11,951
  15,062
  18,525
  22,339
  26,499
  30,999
  35,832
  40,990
  46,466
  52,252
  58,343
  64,734
  71,422
  78,407
  85,689
  93,272
  101,162
  109,364
  117,890
  126,750
  135,956
  145,525
  155,473
  165,819
  176,582
  187,785
  199,451
  211,605
Earnings before tax, $m
  19,969
  28,591
  38,294
  49,068
  60,903
  73,786
  87,696
  102,609
  118,502
  135,349
  171,813
  190,514
  210,120
  230,626
  252,030
  274,337
  297,560
  321,716
  346,830
  372,932
  400,058
  428,250
  457,556
  488,028
  519,724
  552,708
  587,048
  622,816
  660,090
  698,953
Tax expense, $m
  5,392
  7,720
  10,339
  13,248
  16,444
  19,922
  23,678
  27,705
  31,995
  36,544
  46,390
  51,439
  56,732
  62,269
  68,048
  74,071
  80,341
  86,863
  93,644
  100,692
  108,016
  115,628
  123,540
  131,768
  140,326
  149,231
  158,503
  168,160
  178,224
  188,717
Net income, $m
  14,577
  20,872
  27,955
  35,819
  44,459
  53,864
  64,018
  74,905
  86,506
  98,805
  125,424
  139,075
  153,388
  168,357
  183,982
  200,266
  217,219
  234,853
  253,186
  272,240
  292,043
  312,623
  334,016
  356,261
  379,399
  403,477
  428,545
  454,655
  481,866
  510,236

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  305,636
  373,181
  449,273
  533,965
  627,227
  728,959
  839,013
  957,210
  1,083,359
  1,217,273
  1,358,780
  1,507,734
  1,664,029
  1,827,595
  1,998,413
  2,176,510
  2,361,965
  2,554,906
  2,755,512
  2,964,011
  3,180,679
  3,405,838
  3,639,855
  3,883,142
  4,136,150
  4,399,375
  4,673,351
  4,958,652
  5,255,891
  5,565,722
Adjusted assets (=assets-cash), $m
  305,636
  373,181
  449,273
  533,965
  627,227
  728,959
  839,013
  957,210
  1,083,359
  1,217,273
  1,358,780
  1,507,734
  1,664,029
  1,827,595
  1,998,413
  2,176,510
  2,361,965
  2,554,906
  2,755,512
  2,964,011
  3,180,679
  3,405,838
  3,639,855
  3,883,142
  4,136,150
  4,399,375
  4,673,351
  4,958,652
  5,255,891
  5,565,722
Revenue / Adjusted assets
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
  0.229
Average production assets, $m
  147,050
  179,548
  216,158
  256,906
  301,777
  350,723
  403,673
  460,541
  521,235
  585,665
  653,748
  725,415
  800,612
  879,309
  961,494
  1,047,182
  1,136,410
  1,229,239
  1,325,757
  1,426,072
  1,530,317
  1,638,647
  1,751,240
  1,868,292
  1,990,022
  2,116,667
  2,248,485
  2,385,751
  2,528,762
  2,677,830
Working capital, $m
  -20,437
  -24,954
  -30,042
  -35,705
  -41,941
  -48,744
  -56,103
  -64,007
  -72,442
  -81,397
  -90,859
  -100,819
  -111,270
  -122,208
  -133,630
  -145,539
  -157,940
  -170,841
  -184,256
  -198,197
  -212,686
  -227,742
  -243,390
  -259,658
  -276,576
  -294,177
  -312,498
  -331,575
  -351,451
  -372,169
Total debt, $m
  158,431
  206,051
  259,695
  319,403
  385,153
  456,874
  534,462
  617,791
  706,726
  801,135
  900,898
  1,005,911
  1,116,098
  1,231,413
  1,351,839
  1,477,398
  1,608,143
  1,744,167
  1,885,594
  2,032,586
  2,185,337
  2,344,074
  2,509,056
  2,680,573
  2,858,944
  3,044,517
  3,237,670
  3,438,807
  3,648,361
  3,866,792
Total liabilities, $m
  215,473
  263,093
  316,737
  376,445
  442,195
  513,916
  591,504
  674,833
  763,768
  858,177
  957,940
  1,062,953
  1,173,140
  1,288,455
  1,408,881
  1,534,440
  1,665,185
  1,801,209
  1,942,636
  2,089,628
  2,242,379
  2,401,116
  2,566,098
  2,737,615
  2,915,986
  3,101,559
  3,294,712
  3,495,849
  3,705,403
  3,923,834
Total equity, $m
  90,163
  110,088
  132,535
  157,520
  185,032
  215,043
  247,509
  282,377
  319,591
  359,096
  400,840
  444,782
  490,888
  539,141
  589,532
  642,070
  696,780
  753,697
  812,876
  874,383
  938,300
  1,004,722
  1,073,757
  1,145,527
  1,220,164
  1,297,816
  1,378,638
  1,462,802
  1,550,488
  1,641,888
Total liabilities and equity, $m
  305,636
  373,181
  449,272
  533,965
  627,227
  728,959
  839,013
  957,210
  1,083,359
  1,217,273
  1,358,780
  1,507,735
  1,664,028
  1,827,596
  1,998,413
  2,176,510
  2,361,965
  2,554,906
  2,755,512
  2,964,011
  3,180,679
  3,405,838
  3,639,855
  3,883,142
  4,136,150
  4,399,375
  4,673,350
  4,958,651
  5,255,891
  5,565,722
Debt-to-equity ratio
  1.760
  1.870
  1.960
  2.030
  2.080
  2.120
  2.160
  2.190
  2.210
  2.230
  2.250
  2.260
  2.270
  2.280
  2.290
  2.300
  2.310
  2.310
  2.320
  2.320
  2.330
  2.330
  2.340
  2.340
  2.340
  2.350
  2.350
  2.350
  2.350
  2.360
Adjusted equity ratio
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  14,577
  20,872
  27,955
  35,819
  44,459
  53,864
  64,018
  74,905
  86,506
  98,805
  125,424
  139,075
  153,388
  168,357
  183,982
  200,266
  217,219
  234,853
  253,186
  272,240
  292,043
  312,623
  334,016
  356,261
  379,399
  403,477
  428,545
  454,655
  481,866
  510,236
Depreciation, amort., depletion, $m
  23,583
  24,666
  25,887
  27,245
  28,741
  30,372
  32,137
  34,033
  36,056
  38,204
  21,792
  24,180
  26,687
  29,310
  32,050
  34,906
  37,880
  40,975
  44,192
  47,536
  51,011
  54,622
  58,375
  62,276
  66,334
  70,556
  74,949
  79,525
  84,292
  89,261
Funds from operations, $m
  38,160
  45,538
  53,842
  63,064
  73,200
  84,236
  96,155
  108,938
  122,562
  137,009
  147,215
  163,256
  180,075
  197,667
  216,031
  235,172
  255,099
  275,828
  297,378
  319,776
  343,053
  367,244
  392,391
  418,537
  445,733
  474,033
  503,494
  534,180
  566,158
  599,497
Change in working capital, $m
  -3,956
  -4,517
  -5,088
  -5,663
  -6,236
  -6,803
  -7,359
  -7,904
  -8,435
  -8,955
  -9,462
  -9,960
  -10,451
  -10,937
  -11,422
  -11,909
  -12,401
  -12,902
  -13,414
  -13,942
  -14,488
  -15,056
  -15,648
  -16,268
  -16,918
  -17,601
  -18,320
  -19,077
  -19,876
  -20,718
Cash from operations, $m
  42,116
  50,055
  58,930
  68,728
  79,436
  91,039
  103,514
  116,841
  130,997
  145,963
  156,678
  173,216
  190,526
  208,605
  227,454
  247,081
  267,500
  288,729
  310,792
  333,718
  357,541
  382,300
  408,039
  434,805
  462,651
  491,634
  521,814
  553,258
  586,033
  620,215
Maintenance CAPEX, $m
  -3,952
  -4,902
  -5,985
  -7,205
  -8,564
  -10,059
  -11,691
  -13,456
  -15,351
  -17,375
  -19,522
  -21,792
  -24,180
  -26,687
  -29,310
  -32,050
  -34,906
  -37,880
  -40,975
  -44,192
  -47,536
  -51,011
  -54,622
  -58,375
  -62,276
  -66,334
  -70,556
  -74,949
  -79,525
  -84,292
New CAPEX, $m
  -28,482
  -32,498
  -36,610
  -40,748
  -44,871
  -48,946
  -52,950
  -56,868
  -60,694
  -64,430
  -68,083
  -71,667
  -75,198
  -78,697
  -82,185
  -85,688
  -89,228
  -92,830
  -96,517
  -100,315
  -104,245
  -108,331
  -112,593
  -117,052
  -121,730
  -126,645
  -131,818
  -137,266
  -143,011
  -149,069
Cash from investing activities, $m
  -32,434
  -37,400
  -42,595
  -47,953
  -53,435
  -59,005
  -64,641
  -70,324
  -76,045
  -81,805
  -87,605
  -93,459
  -99,378
  -105,384
  -111,495
  -117,738
  -124,134
  -130,710
  -137,492
  -144,507
  -151,781
  -159,342
  -167,215
  -175,427
  -184,006
  -192,979
  -202,374
  -212,215
  -222,536
  -233,361
Free cash flow, $m
  9,682
  12,655
  16,335
  20,774
  26,002
  32,033
  38,874
  46,517
  54,952
  64,159
  69,072
  79,758
  91,148
  103,221
  115,958
  129,344
  143,366
  158,019
  173,300
  189,211
  205,760
  222,959
  240,825
  259,378
  278,645
  298,655
  319,441
  341,042
  363,498
  386,854
Issuance/(repayment) of debt, $m
  41,932
  47,620
  53,645
  59,708
  65,750
  71,721
  77,588
  83,329
  88,935
  94,409
  99,762
  105,013
  110,187
  115,314
  120,427
  125,559
  130,746
  136,023
  141,427
  146,992
  152,751
  158,737
  164,982
  171,517
  178,371
  185,574
  193,153
  201,137
  209,554
  218,431
Issuance/(repurchase) of shares, $m
  3,000
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  44,932
  47,620
  53,645
  59,708
  65,750
  71,721
  77,588
  83,329
  88,935
  94,409
  99,762
  105,013
  110,187
  115,314
  120,427
  125,559
  130,746
  136,023
  141,427
  146,992
  152,751
  158,737
  164,982
  171,517
  178,371
  185,574
  193,153
  201,137
  209,554
  218,431
Total cash flow (excl. dividends), $m
  54,614
  60,274
  69,979
  80,482
  91,751
  103,754
  116,462
  129,846
  143,887
  158,568
  168,835
  184,771
  201,335
  218,535
  236,385
  254,902
  274,112
  294,043
  314,727
  336,203
  358,511
  381,696
  405,807
  430,895
  457,016
  484,228
  512,594
  542,179
  573,052
  605,285
Retained Cash Flow (-), $m
  -17,578
  -19,926
  -22,447
  -24,984
  -27,512
  -30,011
  -32,466
  -34,868
  -37,214
  -39,505
  -41,744
  -43,942
  -46,107
  -48,252
  -50,391
  -52,539
  -54,709
  -56,918
  -59,179
  -61,507
  -63,917
  -66,422
  -69,035
  -71,769
  -74,638
  -77,651
  -80,823
  -84,164
  -87,686
  -91,400
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  37,037
  40,348
  47,532
  55,498
  64,239
  73,744
  83,996
  94,978
  106,673
  119,063
  127,090
  140,829
  155,228
  170,283
  185,993
  202,363
  219,403
  237,125
  255,549
  274,696
  294,594
  315,274
  336,772
  359,126
  382,378
  406,577
  431,771
  458,015
  485,366
  513,885
Discount rate, %
  8.60
  9.03
  9.48
  9.96
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.42
  27.74
  29.12
  30.58
  32.11
  33.71
  35.40
PV of cash for distribution, $m
  34,104
  33,942
  36,222
  37,967
  39,076
  39,477
  39,143
  38,084
  36,352
  34,032
  30,047
  27,135
  23,995
  20,769
  17,587
  14,560
  11,778
  9,301
  7,165
  5,380
  3,933
  2,796
  1,931
  1,294
  841
  529
  321
  188
  106
  58
Current shareholders' claim on cash, %
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4
  94.4

Anheuser Busch Inbev NV (AB InBev) is a Belgium-based company engaged in the brewers industry. The Company owns a portfolio of over 200 beer brands. The Company's brand portfolio includes global brands, such as Budweiser, Corona and Stella Artois; international brands, including Beck's, Leffe and Hoegaarden, and local champions, such as Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, Cass and Jupiler. The Company's soft drinks business consists of both own production and agreements with PepsiCo related to bottling and distribution arrangements between its various subsidiaries and PepsiCo. Ambev, which is a subsidiary of the Company, is a PepsiCo bottler. Brands that are distributed under these agreements are Pepsi, 7UP and Gatorade.

FINANCIAL RATIOS  of  Anheuser-Busch InBev ADR (BUD)

Valuation Ratios
P/E Ratio 24.2
Price to Sales 0.7
Price to Book 0.4
Price to Tangible Book
Price to Cash Flow 3
Price to Free Cash Flow 5.8
Growth Rates
Sales Growth Rate 4.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 4.8%
Cap. Spend. - 3 Yr. Gr. Rate 5.2%
Financial Strength
Quick Ratio 2
Current Ratio 0.4
LT Debt to Equity 159.7%
Total Debt to Equity 172.1%
Interest Coverage 2
Management Effectiveness
Return On Assets 1.7%
Ret/ On Assets - 3 Yr. Avg. 5.6%
Return On Total Capital 0.9%
Ret/ On T. Cap. - 3 Yr. Avg. 6.2%
Return On Equity 2.2%
Return On Equity - 3 Yr. Avg. 12.8%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 60.9%
Gross Margin - 3 Yr. Avg. 60.6%
EBITDA Margin 24.4%
EBITDA Margin - 3 Yr. Avg. 35.4%
Operating Margin 28.3%
Oper. Margin - 3 Yr. Avg. 31.1%
Pre-Tax Margin 9.5%
Pre-Tax Margin - 3 Yr. Avg. 22.5%
Net Profit Margin 2.7%
Net Profit Margin - 3 Yr. Avg. 13.8%
Effective Tax Rate 37.2%
Eff/ Tax Rate - 3 Yr. Avg. 25.4%
Payout Ratio 680.9%

BUD stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BUD stock intrinsic value calculation we used $56444 million for the last fiscal year's total revenue generated by Anheuser-Busch InBev ADR. The default revenue input number comes from 0001 income statement of Anheuser-Busch InBev ADR. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our BUD stock valuation model: a) initial revenue growth rate of 24% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.6%, whose default value for BUD is calculated based on our internal credit rating of Anheuser-Busch InBev ADR, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Anheuser-Busch InBev ADR.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of BUD stock the variable cost ratio is equal to 60.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $5014 million in the base year in the intrinsic value calculation for BUD stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.8% for Anheuser-Busch InBev ADR.

Corporate tax rate of 27% is the nominal tax rate for Anheuser-Busch InBev ADR. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the BUD stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for BUD are equal to 210.1%.

Life of production assets of 49.2 years is the average useful life of capital assets used in Anheuser-Busch InBev ADR operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for BUD is equal to -29.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $72585 million for Anheuser-Busch InBev ADR - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 103.791 million for Anheuser-Busch InBev ADR is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Anheuser-Busch InBev ADR at the current share price and the inputted number of shares is $9.6 billion.

RELATED COMPANIES Price Int.Val. Rating
CCU Compania Cerve 28.23 107.08  str.buy
DEO Diageo ADR 141.25 552.56  str.buy
STZ Constellation 216.94 151.42  sell
TAP Molson Coors B 64.78 296.74  str.buy

COMPANY NEWS

▶ 3 Legal Highs for Your Portfolio   [Sep-20-18 03:13PM  InvestorPlace]
▶ Jim Cramer: The Tilray Short Squeeze   [Sep-19-18 07:01PM  TheStreet.com]
▶ Why Tilray Stock Isnt Worth $100   [Sep-18-18 04:17PM  InvestorPlace]
▶ Top 4 Beer Stocks for 2018   [Sep-17-18 09:22AM  Investopedia]
▶ Anheuser-Busch to send 300K cans of drinking water to Carolinas   [Sep-13-18 11:35AM  Fox Business Videos]
▶ The Premium for Shopify Stock Is No Longer Justified   [Sep-04-18 09:20AM  InvestorPlace]
▶ Why Big Beer Stocks Are Struggling   [Sep-01-18 08:04PM  Motley Fool]
▶ Buy Altria and Phillip Morris   [Aug-30-18 03:37PM  GuruFocus.com]
▶ I Just Bought These 3 Stocks. Should You?   [09:19AM  Motley Fool]
▶ Study finds craft beer industry in St. Louis is booming   [Aug-27-18 02:57PM  American City Business Journals]
▶ Better Buy: Altria Group vs. Anheuser Busch Inbev   [Aug-26-18 02:54PM  Motley Fool]
▶ Spiked Seltzer Scoring Big With Consumers   [07:18AM  Motley Fool]
▶ 3 Stocks to Buy and Hold for the Next 50 Years   [Aug-25-18 10:15AM  Motley Fool]
▶ 2 Hated Dividend Stocks to Buy Now   [Aug-23-18 06:32AM  Motley Fool]
▶ 15 Stocks for Tailgating Season   [06:00AM  Morningstar]
▶ Is Craft Brew Alliance the Craft Brewer to Watch?   [Aug-20-18 08:10AM  Motley Fool]
▶ Beer Makers Are Drunk on Marijuana's Potential   [Aug-18-18 11:41AM  Motley Fool]
▶ Katie Barrett paves the way for female leadership at Anheuser-Busch   [Aug-10-18 06:00AM  American City Business Journals]
▶ MGM, the NBA, & the Future of Sports Betting   [Aug-06-18 02:26PM  Zacks]
▶ [$$] America's Long Love Affair With Beer Is on the Rocks   [10:41AM  The Wall Street Journal]
▶ World Cup Boosts Anheuser-Busch InBev Sales   [Jul-30-18 03:10PM  Motley Fool]
▶ [$$] Heineken gives investors reasons for cheer   [Jul-29-18 11:36PM  Financial Times]
▶ Barclays Turns Bullish On AmBev's Story   [Jul-27-18 04:40PM  Benzinga]
▶ Beer bonanza: Missouri craft breweries continue to tap growing market   [06:00AM  American City Business Journals]
▶ [$$] Americans Declining Taste for Bud Weighs on AB InBev   [Jul-26-18 08:38PM  The Wall Street Journal]
▶ [$$] Americans' Declining Taste for Bud Weighs on AB InBev   [12:31PM  The Wall Street Journal]
▶ [$$] AB InBev: stale ale   [08:48AM  Financial Times]
▶ Anheuser-Busch Inbev: 2Q Earnings Snapshot   [05:01AM  Associated Press]
▶ [$$] AB InBev Profit Rises on Core Brands Growth   [02:28AM  The Wall Street Journal]
▶ Anheuser-Busch InBev's Q2 Earnings Outlook   [Jul-25-18 02:52PM  Benzinga]
▶ 3 Top Dividend Stocks With Yields Over 3%   [06:33AM  Motley Fool]
▶ Rugby's big scrum turns global eyes and business to AT&T Park   [Jul-18-18 09:21AM  American City Business Journals]
▶ New Strong Sell Stocks for July 16th   [Jul-16-18 09:39AM  Zacks]
▶ Corporations market at World Cup despite absence of US   [Jul-13-18 01:40PM  Associated Press]
▶ Is Constellation Brands Headed for Slower Growth?   [Jul-12-18 10:18AM  Motley Fool]
▶ 5 Stocks That Are Getting a World Cup Boost   [Jul-10-18 03:32PM  InvestorPlace]
▶ M&A Deals in Consumer Goods Hit 15-Year High   [Jul-09-18 11:45AM  Investopedia]
▶ 8 Defensive Stocks Are Crushing the Techs   [Jul-06-18 08:00AM  Investopedia]
▶ Anheuser-Busch InBev Is a Solid Buy at $100/Share   [Jul-05-18 11:54PM  InvestorPlace]
▶ Anheuser-Busch pushes new summer tastes   [06:50AM  CNBC Videos]
▶ 10 Top-Selling Products Still Made in America   [Jul-02-18 07:49AM  Motley Fool]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.