One-glance verdict
Undervalued
$136.11 our estimate vs market $82.37
Wall Street consensus: $95.26 (-30.0% lower than our fair-value estimate)
39% below our estimate, below the bear case
Fundamentals snapshot
Anheuser-Busch InBev SA/NV
BUD · NYQ · Consumer Defensive · Beverages - Brewers
Current price
$82.37
52-week range
$59.64 - $86.60
Market cap
$162.20B
Balance sheet
Watch
4.05x Stretched
Net debt $64.72B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 11.4% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Reward Trades at 17.8x P/E vs peer median 18.6x (4.4% cheaper).
- Risk Insider ownership is only 0.0% (peer median: 0.1%).
What this company does
Anheuser-Busch InBev SA/NV
Anheuser-Busch InBev SA/NV makes and sells a huge variety of beers globally, like Budweiser and Corona, along with other drinks. Their money primarily comes from these beverage sales across many regions. Understanding how well they manage their costs against their sales, which relates to their operating margins (the profit left from each dollar of sales after covering day-to-day business expenses), helps show how profitable they are.
How the company got here
Anheuser-Busch InBev SA/NV, or AB InBev, has a history stretching back to 1366, but its modern form was created through a series of major mergers. The company we know today was largely shaped by the 2008 merger of Belgium's InBev and American brewer Anheuser-Busch, creating a global beer giant. This combination brought together iconic brands and expanded the company's reach across continents. AB InBev was formerly known as InBev SA before this significant name change in November 2008, solidifying its identity as a powerhouse in the brewing industry.
What it actually does
AB InBev is a global leader in the production and sale of beer, offering a vast portfolio of approximately 500 beer brands. Beyond beer, the company also produces and sells flavored malt beverages, soft drinks, spirit-based ready-to-drink cocktails, and energy drinks. It operates a diverse range of businesses, including digital commerce platforms for businesses and consumers, as well as at-home draft systems. The company's products are available worldwide, reaching consumers in North America, Latin America, Europe, Africa, the Middle East, and the Asia Pacific region.
North America
This segment encompasses the company's operations in the United States and Canada, where it sells a wide array of its most popular beer brands, including Budweiser, Bud Light, and Michelob Ultra. It also offers flavored malt beverages and other alcoholic drinks. This region represents a significant portion of AB InBev's overall revenue, driven by strong brand recognition and extensive distribution networks. The company also leverages digital platforms to reach consumers and businesses within North America.
Middle Americas
In this region, which includes Mexico and Central American countries, AB InBev sells well-known local and international brands such as Corona Extra and Modelo Especial. This segment is crucial for the company's global presence, contributing a substantial share to its total sales. The company's strategy here often involves catering to local tastes while also introducing global brands to new consumers. Digital delivery platforms also play a role in reaching customers in these markets.
South America
This segment covers the company's extensive operations across South America, featuring popular brands like Brahma, Skol, and Quilmes. South America is a key market for AB InBev, generating a significant portion of its global revenue. The company's success here is built on a deep understanding of local preferences and a strong presence in major markets like Brazil. Digital commerce, including on-demand delivery services like Zé Delivery, is a vital part of its strategy to connect with consumers.
EMEA (Europe, Middle East & Africa)
AB InBev's EMEA segment spans a diverse range of countries, offering a mix of global and regional beer brands such as Stella Artois, Beck's, and Jupiler. This region contributes a notable share to the company's overall business, with varying market dynamics across Europe, the Middle East, and Africa. The company adapts its product offerings to suit the distinct consumer preferences and regulatory environments within this broad geographical area. Premiumization and innovation in product categories are key focuses.
Asia Pacific
This segment includes operations in countries across Asia, featuring brands like Harbin and Cass Fresh, alongside global offerings. The Asia Pacific region is a significant growth area for AB InBev, with a large and expanding consumer base. The company focuses on expanding its market share by introducing popular international brands and developing strong local brands that resonate with regional tastes. Digital platforms and e-commerce are increasingly important for reaching consumers in this dynamic market.
What management is betting on now
AB InBev's management is focused on driving profitable growth by strengthening its core beer business and expanding into adjacent categories like ready-to-drink beverages and spirits. A key priority is the continued investment in digital transformation, enhancing its e-commerce platforms such as BEES, Zé Delivery, and TaDa Delivery to improve customer engagement and operational efficiency. The company is also prioritizing premiumization, offering higher-end products to capture more value from consumers. Furthermore, AB InBev aims to achieve its environmental, social, and governance (ESG) goals, focusing on sustainability throughout its value chain.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $136.11 vs current price $82.37
Wall Street consensus is the average analyst price target: $95.26 (-30.0% lower than our fair-value estimate).
Our most-likely fair value is $136.11 a share — about 65.2% above today's price of $82.37, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $64.7B. Interest coverage 4.1x.
Net debt
$64.72B
Interest coverage
4.05x
Anheuser-Busch InBev SA/NV's profit covers its interest bill about 4.1 times over.
Watch
Worse cushion
Baseline
Better cushion
BUD
BASELINE
Anheuser-Busch InBev SA/NV
Total debt $72.73B Interest coverage 4.05x This is the baseline the peer rows are being compared against.
Total debt $22.20B Interest coverage 2.94x -27% vs BUD Carries about 1.4x less debt cushion than BUD.
Total debt $10.32B Interest coverage 7.92x +95% vs BUD Carries about 2.0x more debt cushion than BUD.
Total debt $23.09B Interest coverage 5.17x +28% vs BUD Carries about 1.3x more debt cushion than BUD.
Total debt $7.91B Interest coverage 6.58x +62% vs BUD Carries about 1.6x more debt cushion than BUD.
Total debt $8.99B Interest coverage 4.32x +7% vs BUD Has roughly the same debt cushion as BUD.
What you should know
The case for and against BUD
3 Rewards
1 Risk
Rewards
-
Returns 11.4% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Trades at 17.8x P/E vs peer median 18.6x (4.4% cheaper).
Risks
-
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)
17.75x
Forward P/E
16.77x
P/B
10.40x
P/S
2.59x
EV/EBITDA
54.07x
PEG ratio
1.75x
Profitability
How much profit each dollar creates
Gross margin
56.5%
Operating margin
27.3%
Net margin
14.9%
ROE
11.4%
ROA
4.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.72x
Current ratio
0.66x
Quick ratio
0.46x
Total debt
$72.73B
Total cash
$8.01B
Growth
How the business has been compounding
Revenue TTM
$62.61B
Revenue 5Y CAGR
0.9%
EPS TTM
4.64
EPS 5Y CAGR
5.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$14.88B
Free CF TTM
$11.23B
FCF margin
17.9%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
29.0%
Last ex-div date
2026-05-08