Exploring Anheuser-Busch InBev (BUD) – Key Insights for Investors

It hasn't been a great afternoon session for Anheuser-Busch InBev investors, who have watched their shares sink by -1.9% to a price of $62.31. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.

Anheuser-Busch InBev's Valuation Is in Line With Its Sector Averages:

Anheuser-Busch InBev SA/NV produces, distributes, exports, markets, and sells beer and beverages. The company belongs to the Consumer Staples sector, which has an average price to earnings (P/E) ratio of 21.21 and an average price to book (P/B) ratio of 4.12. In contrast, Anheuser-Busch InBev has a trailing 12 month P/E ratio of 26.7 and a P/B ratio of 1.51.

When we divideAnheuser-Busch InBev's P/E ratio by its expected five-year EPS growth rate, we obtain a PEG ratio of 0.9, which indicates that the market is undervaluing the company's projected growth (a PEG ratio of 1 indicates a fairly valued company). Your analysis of the stock shouldn't end here. Rather, a good PEG ratio should alert you that it may be worthwhile to take a closer look at the stock.

A Positive EPS Growth Rate but Not Enough Current Assets to Cover Current Liabilities:

2018 2019 2020 2021 2022 2023
Revenue (M) $53,041 $52,329 $46,881 $54,304 $57,786 $59,380
Gross Margins 62% 61% 57% 56% 54% 54%
Net Margins 11% 20% 5% 11% 13% 12%
Net Income (M) $5,688 $10,414 $2,202 $6,114 $7,597 $6,891
Net Interest Expense (M) $4,141 $4,168 -$4,004 $3,674 $3,588 $3,696
Earnings Per Share $2.17 $4.53 $0.69 $2.28 $2.91 $2.6
EPS Growth n/a 108.76% -84.77% 230.43% 27.63% -10.65%
Avg. Price $88.08 $80.77 $55.68 $62.99 $57.64 $62.33
P/E Ratio 39.86 17.48 79.54 27.03 19.41 23.52
Free Cash Flow (M) $15,064 $14,036 $10,891 $14,799 $13,298 $13,265
Current Ratio 0.52 0.83 0.82 0.7 0.67 0.63
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.