Investors haven’t really been all that eager to invest in Mexico this year, and as one of the leading plays on consumer spending, FEMSA (FMX) has likewise had a lackluster performance. The underlying operating performance has remained strong, though, and stripping out the Coca-Cola FEMSA (KOF) and Heineken (OTCQX:HEINY) suggests a multi-year low valuation for the core FEMSA retail operations that, though understandable in the context of reduced near-term confidence around Mexico’s economy, still looks relatively attractive on a long-term basis.
I thought FEMSA’s valuation was “okay, but not