Using the industry peer median P/E multiple (trailing + forward), Monster Beverage Corporation (MNST) has a fair value of $46.15 based on 5 comparable companies in the Beverages - Non-Alcoholic industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Monster Beverage CorporationMNST | 71,214 | 37.3x | 31.9x |
| Mondelez International, Inc.MDLZ | 74,615 | 30.6x | 19.0x |
| Colgate-Palmolive CompanyCL | 67,887 | 32.2x | 21.9x |
| Target CorporationTGT | 52,762 | 14.3x | 14.6x |
| The Kroger Co.KR | 45,318 | 46.5x | 13.8x |
| Keurig Dr Pepper Inc.KDP | 35,713 | 17.2x | 13.7x |
| Industry Median | 30.6x | 14.6x | |
| (*) Profit after tax | 1,905 | 2,231 | |
| Equity Value | 58,297 | 32,566 | |
| (/) Outstanding shares | 984 | 984 | |
| Fair Price | $59 | $33 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.