One-glance verdict
Undervalued
$7.48 our estimate vs market $2.66
Wall Street consensus: $3.20 (-57.3% lower than our fair-value estimate)
64% below our estimate, below the bear case
Fundamentals snapshot
Ambev S.A.
ABEV · NYQ · Consumer Defensive · Beverages - Brewers
Current price
$2.66
52-week range
$2.28 - $3.45
Market cap
$41.01B
Balance sheet
Healthy
8.20x Adequate
Net cash $3.57B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 17.7% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Stock trades 433.3% above its 5-year average P/E.
- Risk Insider ownership is only 0.0% (peer median: 0.1%).
What this company does
Ambev S.A.
Ambev is a giant beverage company that primarily sells beer and soft drinks in countries like Brazil and Canada. Their money mainly comes from selling these drinks through a huge network of distributors and stores, and this matters because it shows how well they are reaching customers with their popular brands.
How the company got here
Ambev's story began way back in 1853 in Brazil, with the founding of Companhia Antarctica Paulista. Later, in 1999, it merged with another major Brazilian brewer, Brahma, to form Ambev. This merger created a powerhouse in the Latin American beverage market. Ambev is now a subsidiary of Anheuser-Busch InBev (AB InBev), a global brewing giant, which gives it access to international expertise and resources. This long history has allowed Ambev to build strong brand recognition and a vast distribution network across many countries.
What it actually does
Ambev is essentially a giant beverage company that makes and sells a wide variety of drinks. Think of your favorite beers, sodas, and even bottled water – Ambev likely has a hand in making or distributing many of them. They produce these drinks and then get them onto the shelves of supermarkets, convenience stores, and bars through an extensive network of distributors. Their goal is to make sure people can easily find and buy their products wherever they are.
Beer
This is Ambev's core business, where they brew and sell a wide range of beers. You'll find popular brands like Skol and Brahma, which are household names in many parts of Latin America. They offer everything from light lagers to more premium options, catering to different tastes and occasions. The beer segment is the largest part of Ambev's business, contributing the most to its overall sales and profits.
Non-Beer Beverages
Beyond beer, Ambev also produces and sells a variety of other drinks. This includes soft drinks, bottled water, teas, and even ready-to-drink options like cocktails and spritzers. Brands like Guaraná Antarctica, a popular Brazilian soft drink, fall into this category. This diversification helps Ambev capture a broader market share and appeal to consumers who may not be drinking beer.
What management is betting on now
Ambev's management is focused on continuing to grow its market share in the regions where it operates, particularly in Latin America. They are investing in innovation to introduce new products and flavors that appeal to changing consumer preferences, such as healthier or more premium beverage options. Strengthening their distribution network and leveraging technology to improve efficiency are also key priorities. The company aims to maintain its leadership position by adapting to market trends and ensuring its brands remain top choices for consumers.
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value $7.48 vs current price $2.66
Wall Street consensus is the average analyst price target: $3.20 (-57.3% lower than our fair-value estimate).
Our most-likely fair value is $7.48 a share — about 181.1% above today's price of $2.66, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $3.6B - more cash than debt. Interest coverage 8.2x.
Net debt
$-3.57B
Interest coverage
8.20x
Ambev S.A.'s profit covers its interest bill about 8.2 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
ABEV
BASELINE
Ambev S.A.
Total debt $504.16M Interest coverage 8.20x This is the baseline the peer rows are being compared against.
Total debt $72.73B Interest coverage 4.05x -51% vs ABEV Carries about 2.0x less debt cushion than ABEV.
Total debt $10.32B Interest coverage 7.92x -3% vs ABEV Has roughly the same debt cushion as ABEV.
Total debt $22.20B Interest coverage 2.94x -64% vs ABEV Carries about 2.8x less debt cushion than ABEV.
Total debt $7.91B Interest coverage 6.58x -20% vs ABEV Carries about 1.2x less debt cushion than ABEV.
Total debt $23.09B Interest coverage 5.17x -37% vs ABEV Carries about 1.6x less debt cushion than ABEV.
What you should know
The case for and against ABEV
3 Rewards
2 Risks
Rewards
-
Returns 17.7% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Trades at 14.0x P/E vs peer median 17.4x (19.7% cheaper).
Risks
-
Stock trades 433.3% above its 5-year average P/E.
-
Insider ownership is only 0.0% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.00x
Forward P/E
12.75x
P/B
2.27x
P/S
0.46x
EV/EBITDA
0.81x
PEG ratio
1.80x
Profitability
How much profit each dollar creates
Gross margin
51.8%
Operating margin
25.7%
Net margin
17.7%
ROE
17.7%
ROA
10.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.03x
Current ratio
1.06x
Quick ratio
0.73x
Total debt
$504.16M
Total cash
$4.07B
Growth
How the business has been compounding
Revenue TTM
$16.53B
Revenue 5Y CAGR
3.4%
EPS TTM
0.19
EPS 5Y CAGR
2.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.54B
Free CF TTM
$3.69B
FCF margin
22.3%
Dividend
Shareholder payout
Yield
5.1%
Payout ratio
74.2%
Last ex-div date
2026-09-23