Stock Analysis & Valuation Anheuser-Busch InBev SA/NV (1NBA.DE)

• Previous Close: €60.06
• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	80.60	34
Intrinsic value (DCF)	31.33	-48
Graham-Dodd Method		n/a
Graham Formula	22.00	-63

Strategic Investment Analysis

Company Overview

Anheuser-Busch InBev SA/NV (AB InBev) is the world's largest brewer, with a dominant global presence in the alcoholic beverages industry. Headquartered in Leuven, Belgium, the company boasts a diverse portfolio of over 500 beer brands, including iconic names like Budweiser, Corona, Stella Artois, and Michelob Ultra. Operating in the Consumer Defensive sector, AB InBev serves markets worldwide, leveraging its extensive distribution network and strong brand equity. The company's business model focuses on production, distribution, and sales of beer, alcoholic beverages, and soft drinks, ensuring resilience in various economic conditions. With a history dating back to 1366, AB InBev combines tradition with innovation, continuously expanding its market share through strategic acquisitions and organic growth. Its scale, brand diversity, and operational efficiency make it a leader in the global beer industry.

Investment Summary

Anheuser-Busch InBev presents a compelling investment case due to its market leadership, strong brand portfolio, and global reach. The company's revenue of €59.77 billion and net income of €5.86 billion in the latest fiscal year underscore its financial strength. However, investors should be mindful of its high total debt of €72.17 billion, which could pose risks in a rising interest rate environment. The company's beta of 0.845 suggests lower volatility compared to the broader market, appealing to risk-averse investors. AB InBev's dividend yield, supported by a €1 per share payout, adds to its attractiveness. While its scale provides cost advantages, the competitive and regulatory pressures in the alcoholic beverages industry remain key challenges.

Competitive Analysis

AB InBev's competitive advantage lies in its unparalleled scale, extensive distribution network, and a portfolio of globally recognized brands. The company's ability to leverage its size for cost efficiencies and marketing synergies is unmatched. Its strategic acquisitions, such as the purchase of SABMiller, have solidified its market dominance. However, AB InBev faces intense competition from other global brewers and local players, particularly in emerging markets. The company's focus on premiumization and health-conscious products, like Michelob Ultra, aligns with shifting consumer preferences. Yet, its heavy reliance on mature markets and exposure to regulatory changes in alcohol consumption pose risks. AB InBev's innovation in non-alcoholic beverages and sustainability initiatives provide additional growth avenues, but execution risks remain. Overall, its competitive positioning is strong, but not without challenges from nimble competitors and changing consumer trends.

Major Competitors

• Heineken NV (HEINY): Heineken is AB InBev's closest global competitor, with a strong presence in Europe and emerging markets. Its premium brand portfolio, including Heineken and Amstel, competes directly with AB InBev's offerings. Heineken's focus on sustainability and innovation gives it an edge in certain markets, but it lacks AB InBev's scale and cost advantages.
• Carlsberg A/S (CARL-B.CO): Carlsberg is a significant player in Europe and Asia, with brands like Carlsberg and Tuborg. While smaller than AB InBev, Carlsberg's strong regional presence in Eastern Europe and Asia provides stability. Its focus on premium and craft beers is a strength, but its limited global reach compared to AB InBev is a drawback.
• Molson Coors Beverage Company (TAP): Molson Coors is a major competitor in North America and Europe, with brands like Coors Light and Miller Lite. Its strong foothold in the U.S. market challenges AB InBev's Budweiser and Bud Light. However, Molson Coors' smaller international presence limits its growth potential compared to AB InBev.
• The Coca-Cola Company (KO): While primarily a soft drink company, Coca-Cola competes with AB InBev in the non-alcoholic beverage segment. Its global distribution network and brand strength are unmatched, but its limited focus on alcoholic beverages reduces direct competition. Coca-Cola's diversification into alcoholic ready-to-drink products poses a potential long-term threat.
• Diageo plc (DGE.L): Diageo is a leader in spirits but competes with AB InBev in the premium beer and ready-to-drink segments. Its strong brand portfolio, including Guinness, gives it an edge in certain markets. However, Diageo's focus on spirits limits its direct competition with AB InBev's core beer business.