DCF Tool

MNST

Monster Beverage Corp. – Soft Drink Manufacturing
Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s subsidiaries develop and market energy drinks, including Monster Energy® energy drinks, Monster Energy Ultra® energy drinks, Monster MAXX® maximum strength energy drinks, Java Monster® non-carbonated coffee + energy drinks, Espresso Monster® non-carbonated espresso + energy drinks, Monster Rehab® non-carbonated tea + energy drinks, Muscle Monster® non-carbonated energy shakes, Monster Hydro® non-carbonated refreshment + energy drinks, Monster HydroSport Super Fuel® non-carbonated advanced hydration + energy drinks, Monster Dragon Tea® non-carbonated energy teas, Reign Total Body Fuel® high performance energy drinks, Reign Inferno® thermogenic fuel high performance energy drinks, NOS® energy drinks, Full Throttle® energy drinks, Burn® energy drinks, Samurai® energy drinks, Relentless® energy drinks, Mother® energy drinks, Play® and Power Play® (stylized) energy drinks, BU® energy drinks, Nalu® energy drinks, BPM® energy drinks, Gladiator® energy drinks, Ultra Energy® energy drinks, Live+® energy drinks, Predator® energy drinks and Fury® energy drinks.
Analysis Results
Intrinsic Value $101.97
Latest Price $88.73
Relative Value 13% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 21.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 21.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 2.04 1.88
2023 2.47 2.1
2024 3.0 2.34
2025 3.64 2.62
2026 4.41 2.93
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 68.9 billion. This corresponds to a present value of 42.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.9 billion. Adding in the terminal value gives a total present value of 54.0 billion.

There are presently 530.0 million outstanding shares, so the intrinsic value per share is 101.97.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,682,110,000
Current Cash 3,076,189,000
Current Liabilities 965,076,000
Current Debt 0
Non-Cash Working Capital (NCWC) 640,845,000
Change in NCWC 311,645,000
EBIT 1,797,467,000
Tax Provision 423,944,000
Depreciation and Amortization 50,155,000
Capital Expenditure -57,453,000
Unlevered Free Cash Flow 1,678,800,059
Current Assets 3,140,955,000
Current Cash 2,061,767,000
Current Liabilities 749,988,000
Current Debt 0
Non-Cash Working Capital (NCWC) 329,200,000
Change in NCWC 5,008,000
EBIT 1,633,153,000
Tax Provision 216,563,000
Depreciation and Amortization 60,973,000
Capital Expenditure -67,272,000
Unlevered Free Cash Flow 1,414,367,309
Current Assets 2,316,309,000
Current Cash 1,331,020,000
Current Liabilities 661,097,000
Current Debt 0
Non-Cash Working Capital (NCWC) 324,192,000
Change in NCWC 79,330,000
EBIT 1,402,939,000
Tax Provision 308,127,000
Depreciation and Amortization 64,814,000
Capital Expenditure -110,398,000
Unlevered Free Cash Flow 1,131,391,930
Current Assets 1,804,170,000
Current Cash 958,163,000
Current Liabilities 601,145,000
Current Debt 0
Non-Cash Working Capital (NCWC) 244,862,000
Change in NCWC -79,609,000
EBIT 1,283,619,000
Tax Provision 300,268,000
Depreciation and Amortization 56,979,000
Capital Expenditure -74,925,000
Unlevered Free Cash Flow 888,037,204
Current Assets 2,086,377,000
Current Cash 1,201,555,000
Current Liabilities 560,351,000
Current Debt 0
Non-Cash Working Capital (NCWC) 324,471,000
Change in NCWC -39,074,000
EBIT 1,198,787,000
Tax Provision 380,945,000
Depreciation and Amortization 48,887,000
Capital Expenditure -93,128,000
Unlevered Free Cash Flow 735,426,084
Current Assets 1,432,270,000
Current Cash 598,136,000
Current Liabilities 470,589,000
Current Debt 0
Non-Cash Working Capital (NCWC) 363,545,000
Change in NCWC 215,159,000
EBIT 1,085,338,000
Tax Provision 367,000,000
Depreciation and Amortization 40,845,000
Capital Expenditure -105,337,000
Unlevered Free Cash Flow 867,083,466
Current Assets 3,582,602,000
Current Cash 2,920,027,000
Current Liabilities 514,189,000
Current Debt 0
Non-Cash Working Capital (NCWC) 148,386,000
Change in NCWC -37,620,000
EBIT 732,183,000
Tax Provision 344,815,000
Depreciation and Amortization 30,860,000
Capital Expenditure -42,493,000
Unlevered Free Cash Flow 399,750,988
Current Assets 1,693,429,000
Current Cash 1,151,707,000
Current Liabilities 355,716,000
Current Debt 0
Non-Cash Working Capital (NCWC) 186,006,000
Change in NCWC -66,941,000
EBIT 747,505,000
Tax Provision 262,603,000
Depreciation and Amortization 25,651,000
Capital Expenditure -31,363,000
Unlevered Free Cash Flow 411,644,418
Current Assets 1,183,043,000
Current Cash 614,082,000
Current Liabilities 316,014,000
Current Debt 0
Non-Cash Working Capital (NCWC) 252,947,000
Change in NCWC 26,205,000
EBIT 572,916,000
Tax Provision 225,233,000
Depreciation and Amortization 22,762,000
Capital Expenditure -51,937,000
Unlevered Free Cash Flow 341,109,393
Current Assets 835,068,000
Current Cash 319,781,000
Current Liabilities 288,545,000
Current Debt 0
Non-Cash Working Capital (NCWC) 226,742,000
Change in NCWC 81,641,000
EBIT 550,623,000
Tax Provision 209,134,000
Depreciation and Amortization 20,562,000
Capital Expenditure -49,236,000
Unlevered Free Cash Flow 393,896,561

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.