* Note: Prices are in Million (M) USD.
Description:
Monster Beverage Corporation is a leading player in the energy drink market, renowned for its flagship Monster Energy brand as well as its diverse product portfolio, which includes beverages such as Relentless and Burn. Founded in 1985 and headquartered in Corona, California, the company has successfully expanded its reach both domestically and internationally, appealing to a broad consumer base with innovative flavors and marketing strategies. With a strong focus on brand development and strategic partnerships, Monster continues to capitalize on the growing demand for functional beverages, positioning itself as a formidable competitor in the fast-evolving beverage industry.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $0 M
Debt : $0 M
EBITDA : $0 M
This criteria used industry in which company operates:
Sector: Consumer defensive
Industry: Beverages - soft drinks
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 40.71
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Error: Invalid income data provided.Using default values for calculation.
This criteria used Company's ability to buy back its own share:
Error: Invalid balance sheet data provided.Using default values for calculation.
Based on default values, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.00
Trailing 12-Month Earnings Per Share (EPS): $1.66
Average Earnings Per Share (EPS): $1.66
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Error: Invalid income data provided.Skipping ROE-based PE.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $67.58
52-Week Low: $45.70
Threshold Price (15% Above 52-Week Low): $52.56
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $65,841 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 7 points to above Monster Beverage Corp (MNST) stock.
Fair Value PE
9, Industry Based PE
20, Risk-Free Anchored PE (25% MoS)
18.2. Based on these 3 values, average assigned is
15.73. Value-Trades has assined P/E value
15.73. An average (Current Year EPS + Next Year EPS) earning per share is
$1.66.
Fair value using multiple P/Es (blended): $26.12 (PE 15.73 × EPS $1.66)
So the Final Fair Value is: $26.12
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $1.66
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 15.73 | $26.11 |
