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Boston Beer

In: Business and Management

Submitted By eshumani
Words 17862
Pages 72
Boston Beer Equity Valuation Valuation Date: April 1, 2005

Jason Boney jboneyttu@yahoo.com Jordan Gristy jgristy@yahoo.com Preston Madden preston.e.madden@ttu.edu Heath Stanley charles.h.stanley@ttu.edu

Boston Beer Co. Equity Valuation
Table of Contents
Executive Summary Business and Industry Analysis Competitive Advantages Five Forces Model Industry Competitive Analysis Accounting Analysis Key Accounting Policies Degree of Accounting Flexibility Evaluation of Accounting Strategy Accounting Quality of Disclosure Red Flags Quantitative Analysis Ratio Analysis Liquidity Profitability Capital Structure Forecasting Balance Sheet Income Statement Statement of Cash Flows Forecast Summary Valuation Analysis Method of Comparables Valuation Tools Discounted Free Cash Flow Residual Income Long Run Residual Abnormal Earnings Growth (AEG) Conclusion of Valuation Work Cited Appendix 4

7 8 9 15 17 17 20 22 23 23 25 29 29 31 34 37 37 38 39 40 41 41 44 45 46 47 48 49 50 52

3

Boston Beer Co.

By Valuation Proclamation Heath Stanley, Jordan Gristy, Preston Madden, Jason Boney

Investment Recommendation: Buy, Undervalued
Stock Ticker and Exchange Current Price (4-1-05) 52 week price range Revenue (2004) Market Capitalization Shares Outstanding 3-month Avg. Daily Volume Percent Institutional Ownership Book Value Per Share ROE ROA Est. 5yr EPS Growth Rate Cost of Capital Est. Beta Estimated 5-year -0.201 3-year 0.098 2-year 0.434 Published Beta 0.35 Kd WACC SAM-NYSE $22.14 $18.52 - $27.95 $239,680,000 $313,130,000 14,300,000 40,450 25% $5.52 15.95% 11.64% 2% Ke 5.29% 5.29% 3.67% 5.24 R2 .012 .003 .031 Debt Risk Altman Z-Score EPS Forecast FYE (12/31) EPS

4-28-05
3.49-Company considered safe

2004(A) $0.86

2005(E) $0.69

2006(E) $0.71

2007(E) $0.72

Valuation Ratio Comparison Forward P/E Forward P.E.G. Trailing P/E M/B Valuation Predictions Actual...

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