Anheuser-Busch InBev NV (ADR) (BUD): Is There Still A Play Here?

Given its international footprint and its monopolistic market position in many markets (such as Colombia and Peru) SABMiller is more useful as a comp for ABInBev than Coors. That said, Coors offers a valuation standpoint for North America since it controls roughly 30% of the US beer market against the 45% controlled by ABInBev.

– 2013 Multiples: While ABIInBev has a EV/EBITDA of 12.8x, Coors trades at 17x and SAB trades at 15.4x. Meanwhile, Price to Earnings are 19.2x for ABInBev and 20x for Coors and 22.75x for SAB.

– Dividends: Cash yields are favorable to Coors with a 2.51% yield. SAB offers a 1.73% yield and ABInBev a yield of 2% (expected for the current year).

The figures are clear, Anheuser-Busch InBev NV (ADR) (NYSE:BUD), even after its huge out-performance last year (the shares went up by 30% Year over Year), still is a compelling investment relatively to its competitors. That said, I think the brewer is fairly valued. There is a lot of up-side coming from Asia (above all China) but the company is not longer tremendously under-valued as it was back in 2011. The same applies to Coors and SABMiller, which is the stronger player in the raising Chinese market.  I will stay long ABInBev probably forever, but I wouldn’t increase my current position. At least until the stock price comes down – if it ever does.

The article The King Of Brewers Is Fairly Valued originally appeared on Fool.com.

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