Ambev (ABEV3.SA)
Consumer · B3 · Brazil
Fundamentals
Valuation and ratings
Ambev trades at R$15.60, which is 22% above the R$12.10 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 69 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 15.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Ambev
Ambev S.A., through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, soft drinks, malt and food, and other beverages in Brazil, Central America and Caribbean, Latin America South, and Canada. The company offers beer, ready-to-drink cocktails and spritzers, soft drinks, water, teas, and isotonic drinks under the Brahma, Skol, Antarctica, Original, Quilmes, Andes Origen, Patricia, Paceha, Huari, Pilsen, Presidente, Balboa, Guaraná Antarctica, and Beats brands. It sells its products to distributors, supermarkets, and retailers within a broad distribution network. The company was founded in 1853 and is headquartered in São Paulo, Brazil. Ambev S.A. operates as a subsidiary of Interbrew International B.V.
ABEV3.SA passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Ambev (ABEV3.SA) undervalued?
Against our discounted cash flow estimate of R$12.10, ABEV3.SA at R$15.60 is 22% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is ABEV3.SA's P/E ratio?
ABEV3.SA trades at 15.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.