Beverages - Non-Alcoholic · NASDAQ
Current Price
$76.89
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Monster Beverage Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Monster Beverage Corporation, through its subsidiaries, engages in development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. The company operates through three segments: Monster Energy Drinks, Strategic Brands, and Other. It offers carbonated energy drinks, non-carbonated, ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks and single-serve still waters, and sodas that are considered natural, sparkling juices, and flavored sparkling beverages. The company sells its products to bottlers, full-service beverage distributors, as well as sells directly to retail grocery and speciality chains, wholesalers, club stores, mass merchandisers, convenience chains, drug stores, foodservice customers, value stores, e-commerce retailers, and the military; and concentrates and/or beverage bases to authorized bottling and canning operations. It provides its products under the Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Muscle Monster, Espresso Monster, Punch Monster, Juice Monster, Monster Hydro Energy Water, Monster Hydro Super Sport, Monster HydroSport Super Fuel, Monster Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, and Reign Inferno Thermogenic Fuel, as well as NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play (stylized), Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator, Fury, and True North brands. The company was formerly known as Hansen Natural Corporation and changed its name to Monster Beverage Corporation in January 2012. Monster Beverage Corporation was founded in 1985 and is headquartered in Corona, California.
ROIC (TTM)
21.7%
ROE (TTM)
25.7%
FCF Yield
2.61%
Based on trailing twelve-month data, MNST shows a free cash flow per share of N/A and a ROIC of 21.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.61% are important context metrics when evaluating MNST's stock valuation relative to peers.
The intrinsic value of MNST depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether MNST is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $76.89. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Monster Beverage Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Beverages - Non-Alcoholic industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MNST's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Monster Beverage Corporation, this means projecting how much free cash flow the Beverages - Non-Alcoholic will produce over the next 5-10 years, then discounting those amounts to today's dollars. MNST's ROIC of 21.7% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For MNST, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
