- Ambev is one of the biggest brewers in the world, but you wouldn’t know that from its market cap. What’s holding the stock back?
- I’d suggest that weighing on its stock price is being in problem-beset Brazil and having to pay for commodities (whose prices are rising) in dollars while the Brazilian real depreciates.
- Yet these problems are temporary, whereas the opportunity is solid and mean-reverting. In short, this is a classic example of a value stock, structurally sound yet out of favor.
For further details see:
The Asset Allocator: Ambev - A Major Brewery, Excellent Value (Podcast)