Molson Coors Withdraws Erroneous Alert on Stock Price

Molson Coors Beverage Company is a leading producer and marketer of beers under various brands, including Coors Light, Miller Lite, Molson Canadian, and Carling. The company has 22 production sites worldwide and generates net sales primarily in the United States, the United Kingdom, and Canada.

Molson Coors Beverage Company (TAP) is a leading global brewer and marketer of beer brands, including Coors Light, Miller Lite, Molson Canadian, and Carling. With operations across 22 production sites worldwide, the company generates net sales primarily in the United States, the United Kingdom, and Canada [1].

As of August 5, 2025, Molson Coors Beverage Company's share was trading at $49.22, with a trailing P/E ratio of 9.90 and a forward P/E ratio of 8.08 [2]. The company's market capitalization stands at approximately $9.8 billion, significantly below its estimated $16 billion book break-up value, presenting a deep value opportunity [2].

Molson Coors Beverage Company's portfolio includes iconic brands such as Coors Light, which alone could be worth $8–9 billion at typical 8–10× EBITDA multiples seen in beer M&A deals, nearly covering the entire current market cap [2]. The company's strong brands, including Miller Lite, Blue Moon, and Simply Spiked, reinforce its competitive moat through entrenched shelf space, national logistics, and sticky consumer habits [2].

Under CEO Gavin Hattersley, the company has executed its Acceleration Plan by premiumizing its portfolio, reducing leverage to 2.1× net debt/EBITDA, restoring and growing its dividend at a 3.9% yield, and generating $1.24 billion in free cash flow in 2024, translating to a robust 12%+ FCF yield [2]. At approximately 8.5× underlying pre-tax earnings, TAP trades well below peers at 15–18× EV/FCF, signaling significant upside potential [2].

Risks include flat overall beer consumption, input cost volatility, and execution challenges in beyond-beer segments, but hedging programs, pricing power, and disciplined capital allocation mitigate these concerns [2]. With sustainable dividends, opportunistic buybacks, and a conservative reinvestment strategy, Molson Coors offers a compelling case of paying "yard sale prices" for a 150-year-old portfolio of enduring brands [2].

Molson Coors Beverage Company is not on the list of the 30 Most Popular Stocks Among Hedge Funds, with 45 hedge fund portfolios holding TAP at the end of the first quarter of 2025 [2].

References:
[1] https://www.forbes.com/companies/molson-coors-brewing/
[2] https://finance.yahoo.com/news/molson-coors-beverage-company-tap-184834065.html