One-glance verdict
Undervalued
$36.18 our estimate vs market $26.82
Wall Street consensus: $33.09 (-8.6% lower than our fair-value estimate)
26% below our estimate, below the bear case
Fundamentals snapshot
Carlsberg A/S
CABGY · PNK · Consumer Defensive · Beverages - Brewers
Current price
$26.82
52-week range
$23.10 - $32.16
Market cap
$17.72B
Balance sheet
Stretched
4.32x Stretched
Net debt $7.84B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 18.8% last year.
- Reward Returns 20.4% on equity, ahead of 66% of its peers.
- Risk Stock trades 732.1% above its 5-year average P/E.
- Risk Net debt grew 198.0% over 3 years.
What this company does
Carlsberg A/S
Carlsberg is one of the world's largest brewing companies, making most of its money by selling beer and other beverages in Europe and Asia. Because its products are sold in so many different countries, the company's success is tied to global consumer spending (the amount of money people spend on goods and services) and its ability to compete against local brands. With a history stretching back to 1847, its well-known brand names are a major advantage.
How the company got here
Carlsberg was founded in Copenhagen, Denmark, in 1847 by J. C. Jacobsen, who named the brewery after his son, Carl. A key moment was the 1970 merger with its main Danish competitor, Tuborg, which created a much larger and more powerful company. Over the years, Carlsberg grew by expanding internationally, building its first brewery outside Denmark in 1968 and later acquiring other beverage companies to strengthen its presence in Europe and Asia. The company's focus on scientific research, established early on with the Carlsberg Laboratory, has been a core part of its identity and success in brewing.
What it actually does
Carlsberg is a global beverage company that makes and sells a wide variety of drinks you'd find in stores, bars, and restaurants. While it's most famous for its flagship Carlsberg beer, the company owns over 140 brands, including other well-known beers like Tuborg, Kronenbourg 1664, and Grimbergen. Beyond beer, Carlsberg also produces Somersby cider, various alcohol-free beers, and soft drinks, sometimes through partnerships, like bottling Pepsi in certain regions.
Western Europe
This is Carlsberg's traditional home base and a major part of its business, covering countries across the western part of Europe. In these established markets, the company focuses on selling its well-known premium beer brands and a growing portfolio of soft drinks. While beer sales in this region can be slow-growing, it remains a very important source of revenue (the money a company earns from sales) for the company.
Asia
This region represents a significant and fast-growing part of Carlsberg's business, with a strong presence in countries like China, Vietnam, and India. Consumers here are a key focus for the company's growth plans, as demand for premium beers and international brands is increasing. This segment contributes a large and growing slice of the company's overall revenue and is central to its future ambitions.
Central & Eastern Europe
This segment covers countries in the central and eastern parts of Europe, where Carlsberg has established strong local brands alongside its international ones. The business here is a mix of selling popular local beers and growing its main international brands like Carlsberg and Tuborg. This region provides a solid, though smaller, portion of the company's total sales compared to Western Europe and Asia.
What management is betting on now
The company's current strategy, called 'Accelerate SAIL', focuses on achieving faster growth. A major part of this plan is to invest more in its premium brands, which are more expensive and profitable, and in the 'Beyond Beer' category, which includes ciders, alcohol-free options, and other beverages. Management is also heavily targeting growth in Asian markets, particularly China and Vietnam, seeing them as key areas for future sales. Finally, the company has a strong focus on sustainability (operating in a way that minimizes environmental impact and is socially responsible), with ambitious goals to reduce carbon emissions and water waste.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $36.18 vs current price $26.82
Wall Street consensus is the average analyst price target: $33.09 (-8.6% lower than our fair-value estimate).
Our most-likely fair value is $36.18 a share — about 34.9% above today's price of $26.82, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $7.8B. Interest coverage 4.3x.
Net debt
$7.84B
Interest coverage
4.32x
Carlsberg A/S's profit covers its interest bill about 4.3 times over.
Stretched
Worse cushion
Baseline
Better cushion
CABGY
BASELINE
Carlsberg A/S
Total debt $9.34B Interest coverage 4.32x This is the baseline the peer rows are being compared against.
Total debt $72.73B Interest coverage 4.05x -6% vs CABGY Has roughly the same debt cushion as CABGY.
Total debt $23.99B Interest coverage 5.17x +20% vs CABGY Carries about 1.2x more debt cushion than CABGY.
Total debt $10.53B Interest coverage 7.92x +83% vs CABGY Carries about 1.8x more debt cushion than CABGY.
Total debt $7.91B Interest coverage 6.58x +52% vs CABGY Carries about 1.5x more debt cushion than CABGY.
Total debt $10.94B Interest coverage 6.52x +51% vs CABGY Carries about 1.5x more debt cushion than CABGY.
What you should know
The case for and against CABGY
3 Rewards
3 Risks
Rewards
-
Revenue grew 18.8% last year.
-
Returns 20.4% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 732.1% above its 5-year average P/E.
-
Net debt grew 198.0% over 3 years.
-
Insider ownership is only 0.0% (peer median: 1.8%).
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)
17.88x
Forward P/E
12.56x
P/B
4.00x
P/S
0.20x
EV/EBITDA
3.86x
PEG ratio
3.57x
Profitability
How much profit each dollar creates
Gross margin
45.0%
Operating margin
14.6%
Net margin
7.1%
ROE
20.4%
ROA
5.3%
Health
Liquidity and balance-sheet strength
Debt / equity
1.34x
Current ratio
0.66x
Quick ratio
0.51x
Total debt
$9.34B
Total cash
$1.50B
Growth
How the business has been compounding
Revenue TTM
$14.03B
Revenue 5Y CAGR
8.2%
EPS TTM
1.50
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.93B
Free CF TTM
$1.06B
FCF margin
7.6%
Dividend
Shareholder payout
Yield
3.3%
Payout ratio
60.0%
Last ex-div date
2026-03-18