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MOLSON COORS BREWING CO

VALUATION AND DIVIDEND YIELD ■■

■■

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Molson Coors is trading at a discount to its peers on both EV/EBITDA multiples (both TTM & NTM) and P/E mutiples (TTM). It offers one of the higher yields amongst its peer group, even though its quarterly dividend has not increased for the past 15 quarters. We believe the stock will re-rate post 2018/2019 as the Company achieves its leverage target (3.75x) and increases its quarterly dividend (by an estimated +40% to +75%).

EV/EBITDA TTM

EV/EBITDA NTM

Boston Beer Company Inc Diageo PLC Royal Unibrew A/S Carlsberg Brewery Malaysia Bhd China Resources Beer Holdings Co… Craft Brew Alliance Inc Constellation Brands Inc Heineken Malaysia Bhd Ambev SA Heineken NV Kirin Holdings Co Ltd Anheuser Busch Inbev NV Asahi Group Holdings Ltd San Miguel Brewery Hong Kong Ltd Anadolu Efes Biracilik ve Malt… Carlsberg A/S Compania Cervecerias Unidas SA Molson Coors Brewing Co

Boston Beer Company Inc Diageo PLC Royal Unibrew A/S China Resources Beer Holdings Co… Craft Brew Alliance Inc Constellation Brands Inc Carlsberg Brewery Malaysia Bhd Heineken Malaysia Bhd

Ambev SA

Anheuser Busch Inbev NV Heineken NV Asahi Group Holdings Ltd Kirin Holdings Co Ltd Beijing Yanjing Brewery Co Ltd Molson Coors Brewing Co Carlsberg A/S Compania Cervecerias Unidas SA Anadolu Efes Biracilik ve Malt… 0.0

5.0

10.0

15.0

20.0

25.0

P/E

20.0

5.0

10.0

15.0

20.0

GROSS DIVIDEND YIELD

Beijing Yanjing Brewery Co Ltd Carlsberg A/S Craft Brew Alliance Inc China Resources Beer Holdings Co… Boston Beer Company Inc San Miguel Brewery Hong Kong Ltd Royal Unibrew A/S Diageo PLC Carlsberg Brewery Malaysia Bhd Ambev SA Heineken NV Anheuser Busch Inbev NV Heineken Malaysia Bhd Kirin Holdings Co Ltd Constellation Brands Inc Asahi Group Holdings Ltd Molson Coors Brewing Co Compania Cervecerias Unidas SA 0.0

0.0

40.0

60.0

80.0

100.0

120.0

Heineken Malaysia Bhd Carlsberg Brewery Malaysia Bhd Ambev SA Anheuser Busch Inbev NV Molson Coors Brewing Co Diageo PLC Carlsberg A/S Anadolu Efes Biracilik ve Malt… Kirin Holdings Co Ltd Royal Unibrew A/S Asahi Group Holdings Ltd Heineken NV Constellation Brands Inc China Resources Beer Holdings Co… Beijing Yanjing Brewery Co Ltd San Miguel Brewery Hong Kong Ltd Craft Brew Alliance Inc Compania Cervecerias Unidas SA Boston Beer Company Inc 0.0%

1.0%

2.0%

* Source: Thomson Reuters Eikon - As at 23 November 2018

3.0%

4.0%

91

5.0%

Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018