Busch Beer, Is this Company stock price undervalued considering PE and PS ratings, is it intrinsic value higher than its stock price?


Aime
Anheuser-Busch InBev SA (BUD) is undervalued according to various sources. Here's the analysis:
- Intrinsic Value Assessment:
- Alpha Spread: Anheuser-Busch InBev SA is undervalued by 28% according to Alpha Spread1.
- GF Value: The current intrinsic value estimate for BUD is $93, just below the current trading price of $60.932.
- Morningstar: BUD is considered undervalued with a real value of $64.12 and a target price of $66.633.
- Valuation Ratios:
- PE Ratio: BUD's P/E ratio is 20.5, which is considered reasonable for a stable company with a history of consistent earnings4.
- PS Ratio: The P/S ratio is 1.77, which is lower than the industry average, suggesting that the stock may be undervalued relative to its peers4.
- Financial Performance:
- Earnings: BUD's EPS (Earnings Per Share) is $2.97, which is a significant indicator of its profitability4.
- Free Cash Flow: The company has a strong ability to generate free cash flow, which is a positive sign for its financial health4.
- Market Sentiment:
- Stock Price: The current market price of BUD is $60.93, which is below the estimated intrinsic value, suggesting that the stock may be undervalued12.
- Analyst Ratings: The company has a strong buy consensus among analysts, which is a positive indicator for its future performance4.
Conclusion: Anheuser-Busch InBev SA is undervalued by various metrics, including Alpha Spread and GF Value. Its P/E and P/S ratios suggest that the stock is reasonably valued, and its strong financial performance and positive analyst ratings further support this conclusion. Therefore, it is likely that the intrinsic value of BUD is higher than its current stock price.
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