BUDFF - Anheuser-Busch InBev: Overvalued And Facing Multiple Headwinds
2024-04-09 17:39:20 ET
Summary
- Anheuser-Busch InBev is rated as a "Sell" due to negative long-term trends in beer consumption and its high valuation.
- Beer consumption is declining due to health awareness, government regulation, and a shift towards spirits and wines.
- Investors may find better returns in spirits-focused companies like Pernod Ricard or tobacco companies like British American Tobacco.
Anheuser-Busch InBev SA/NV ( BUD ) is the largest beer brewer in the world. It owns well-known brands such as Budweiser, Stella Artois, and Hertog Jan in the Netherlands. The current company is a result of a large merger between SABMiller and Anheuser-Busch InBev in 2016 for a whopping $100B. This made them the largest beer brewer in the world, and they acquired well-known brands such as Miller Lite. However, BUD has not benefited much from this merger and sold off many of these assets for a lower price after the merger. In addition to this, the fiasco around Bud Light cost the company more than $1b in sales last year. These mistakes point to poor management and a lack of clear strategy for BUD....
Anheuser-Busch InBev: Overvalued And Facing Multiple Headwinds