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United Breweries (BOM:532478) Intrinsic Value: Projected FCF : ₹215.05 (As of May. 05, 2024)


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What is United Breweries Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-05-05), United Breweries's Intrinsic Value: Projected FCF is ₹215.05. The stock price of United Breweries is ₹2037.15. Therefore, United Breweries's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.

The historical rank and industry rank for United Breweries's Intrinsic Value: Projected FCF or its related term are showing as below:

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of United Breweries was 516.64. The lowest was 3.98. And the median was 6.43.

BOM:532478's Price-to-Projected-FCF is not ranked *
in the Beverages - Alcoholic industry.
Industry Median: 1.28
* Ranked among companies with meaningful Price-to-Projected-FCF only.

United Breweries Intrinsic Value: Projected FCF Historical Data

The historical data trend for United Breweries's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

United Breweries Intrinsic Value: Projected FCF Chart

United Breweries Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 203.07 230.64 217.81 243.54 215.05

United Breweries Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 215.05 - - -

Competitive Comparison of United Breweries's Intrinsic Value: Projected FCF

For the Beverages - Brewers subindustry, United Breweries's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


United Breweries's Price-to-Projected-FCF Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, United Breweries's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where United Breweries's Price-to-Projected-FCF falls into.



United Breweries Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get United Breweries's Free Cash Flow(6 year avg) = ₹2,640.69.

United Breweries's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Mar23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*2640.6857142857+39648.9*0.8)/264.405
=215.05

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


United Breweries  (BOM:532478) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

United Breweries's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=2037.15/215.04652504469
=9.47

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


United Breweries Intrinsic Value: Projected FCF Related Terms

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United Breweries (BOM:532478) Business Description

Traded in Other Exchanges
Address
No. 24 Vittal Mallya Road, UB Tower, UB City, Bengaluru, KA, IND, 560 001
United Breweries Ltd brews and sells beer and flavored malt beverages in India. The company has dozens of production facilities in India, and it licenses its brands to be manufactured in the United Kingdom, Australia, and New Zealand for sale worldwide. The company's flagship brand is Kingfisher, which is prominent in India and is sold in dozens of countries around the world. It has two segments Beer and Non-alcoholic beverages. It derives the majority of its revenue from the Beer segment. The company's other brands include Bullet, Cannon 10000, Kalyani, UB Export, Zingaroo, and London Pilsner. United Breweries also sells the Heineken brand in India.

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