Boston Beer Valuation
| SAM Stock | USD 293.30 7.20 2.52% |
At this time, the firm appears to be undervalued. Boston Beer shows a prevailing Real Value of $307.9 per share. The current price of the firm is $293.3. Our model approximates the value of Boston Beer from analyzing the firm fundamentals such as Current Valuation of 3.24 B, profit margin of 0.04 %, and Return On Equity of 0.0711 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Boston Beer's valuation include:
Price Book 3.1826 | Enterprise Value 3.2 B | Enterprise Value Ebitda 15.1328 | Price Sales 1.7079 | Forward PE 28.7356 |
Undervalued
Today
Please note that Boston Beer's price fluctuation is very steady at this time. Calculation of the real value of Boston Beer is based on 3 months time horizon. Increasing Boston Beer's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Boston Beer is useful when determining the fair value of the Boston stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Boston Beer. Since Boston Beer is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Boston Stock. However, Boston Beer's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 293.3 | Real 307.9 | Target 336.23 | Hype 293.3 | Naive 290.47 |
The real value of Boston Stock, also known as its intrinsic value, is the underlying worth of Boston Beer Company, which is reflected in its stock price. It is based on Boston Beer's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Boston Beer's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Boston Beer's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Boston Beer helps investors to forecast how Boston stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Boston Beer more accurately as focusing exclusively on Boston Beer's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Boston Beer's intrinsic value based on its ongoing forecasts of Boston Beer's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Boston Beer's closest peers. When choosing an evaluation method for Boston Beer, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Boston Beer Investments |
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Boston Valuation Trend
Knowing Boston Beer's actual value is paramount for traders to make sound investment determinations. Boston Beer's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Boston Beer's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Boston Beer's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Boston Market Cap
Boston Beer is rated below average in market capitalization category among related companies. Market capitalization of Consumer Staples industry is at this time estimated at about 501.67 Billion. Boston Beer maintains roughly 3.52 Billion in market capitalization contributing less than 1% to stocks in Consumer Staples industry.Boston Beer Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Boston Beer's current stock value. Our valuation model uses many indicators to compare Boston Beer value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Boston Beer competition to find correlations between indicators driving Boston Beer's intrinsic value. More Info.Boston Beer is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.16 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Boston Beer is roughly 6.14 . As of the 25th of April 2024, Price To Book Ratio is likely to grow to 4.18. Comparative valuation analysis is a catch-all model that can be used if you cannot value Boston Beer by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Boston Beer's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Boston Beer's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Boston Beer's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Boston Beer and how it compares across the competition.
About Boston Beer Valuation
The stock valuation mechanism determines the current worth of Boston Beer on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Boston Beer. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Boston Beer based exclusively on its fundamental and basic technical indicators. By analyzing Boston Beer's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Boston Beer's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Boston Beer. We calculate exposure to Boston Beer's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Boston Beer's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 852.4 M | 895 M | |
| Pretax Profit Margin | 0.04 | 0.04 | |
| Operating Profit Margin | 0.07 | 0.09 | |
| Net Profit Margin | 0.03 | 0.06 | |
| Gross Profit Margin | 0.47 | 0.58 |
Boston Beer Quarterly Retained Earnings |
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8 Steps to conduct Boston Beer's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Boston Beer's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Boston Beer's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Boston Beer's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Boston Beer's revenue streams: Identify Boston Beer's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Boston Beer's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Boston Beer's growth potential: Evaluate Boston Beer's management, business model, and growth potential.
- Determine Boston Beer's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Boston Beer's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Boston Beer Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Boston Beer does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 12.3 M | |
| Quarterly Earnings Growth Y O Y | 0.675 | |
| Forward Price Earnings | 28.7356 |
Boston Beer Current Valuation Indicators
Valuation refers to the process of determining the present value of Boston Beer and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Boston we look at many different elements of the entity such as Boston's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Boston Beer's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Boston Beer's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Boston Beer, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Boston Beer's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Boston Beer's worth.When determining whether Boston Beer is a strong investment it is important to analyze Boston Beer's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Boston Beer's future performance. For an informed investment choice regarding Boston Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Boston Beer. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. To learn how to invest in Boston Stock, please use our How to Invest in Boston Beer guide.Note that the Boston Beer information on this page should be used as a complementary analysis to other Boston Beer's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for Boston Stock analysis
When running Boston Beer's price analysis, check to measure Boston Beer's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Boston Beer is operating at the current time. Most of Boston Beer's value examination focuses on studying past and present price action to predict the probability of Boston Beer's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Boston Beer's price. Additionally, you may evaluate how the addition of Boston Beer to your portfolios can decrease your overall portfolio volatility.
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| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |
Is Boston Beer's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Boston Beer. If investors know Boston will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Boston Beer listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.675 | Earnings Share 6.21 | Revenue Per Share 164.399 | Quarterly Revenue Growth (0.12) | Return On Assets 0.0534 |
The market value of Boston Beer is measured differently than its book value, which is the value of Boston that is recorded on the company's balance sheet. Investors also form their own opinion of Boston Beer's value that differs from its market value or its book value, called intrinsic value, which is Boston Beer's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Boston Beer's market value can be influenced by many factors that don't directly affect Boston Beer's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Boston Beer's value and its price as these two are different measures arrived at by different means. Investors typically determine if Boston Beer is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Boston Beer's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.