Monster Beverage Corporation (MNST) Stock Valuation — PE Analysis
Beverages - Non-Alcoholic · NASDAQ
Current Price
$92.83
PE Ratio (TTM)
44.7x
Intrinsic Value
$114.5
+18.9% margin of safety
COMPETITIVE MOAT
↑Global Brand Recognition
Monster's strong brand equity and widespread global recognition drive consumer preference. This allows for premium pricing and sustained demand across diverse markets.
↑International Growth Momentum
Significant international sales growth, particularly in Europe, Asia-Pacific, and Latin America, demonstrates expanding market penetration. This diversification reduces reliance on any single region.
↑Product Innovation Pipeline
Continuous introduction of new flavors and product lines keeps the brand fresh and appeals to evolving consumer tastes. This adaptability is key in the dynamic beverage market.
INVESTMENT RISKS
↓Intense Competition
The non-alcoholic beverage market is highly competitive with numerous established players and emerging brands. This can pressure pricing and market share.
↓Regulatory Scrutiny
Energy drinks face ongoing scrutiny regarding health impacts and marketing practices. Potential new regulations could impact product formulations or sales channels.
↓Input Cost Volatility
Fluctuations in the cost of key ingredients like sugar, caffeine, and packaging materials can impact profit margins. Supply chain disruptions could also pose a challenge.
Base case
MNST base case PE valuation
A base case PE valuation for MNST estimates a fair value of about $114.5 per share, against a current price of $92.83. The model assumes 12.2% annual earnings growth, a 45x target PE multiple, and a 10% discount rate.
Intrinsic Value
$114.5
Margin of safety
+18.9%
Expected annual return
+4.3%
Base case assumptions: 12.2% annual earnings growth, 45x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the MNST PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Monster Beverage Corporation respond.
Open PE Calculator for MNSTCompany Overview
Monster Beverage Corporation is a global entity primarily involved in the innovation, marketing, sale, and distribution of energy beverages and concentrates. Its business operations are categorized into three main divisions: Monster Energy Drinks, Strategic Brands, and a segment designated as "Other." The company boasts an extensive product portfolio, encompassing a wide array of carbonated energy drinks, alongside various non-carbonated options. These include ready-to-drink iced teas, lemonades, diverse juice cocktails, single-serving juices, and fruit beverages. Additionally, their offerings extend to ready-to-drink dairy and coffee-based concoctions, specialized sports drinks, single-serve still waters, and a selection of sodas described as natural, sparkling juices, and flavored sparkling beverages. Monster Beverage distributes its products through a comprehensive network, supplying bottlers and full-service beverage distributors. They also engage in direct sales to a multitude of retail outlets, including grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience stores, pharmacies, foodservice clients, value retailers, e-commerce platforms, and military establishments. Furthermore, the company provides concentrates and beverage bases to its authorized bottling and canning partners. Under its corporate umbrella, the company manages a vast collection of brands. Notable examples include the Monster Energy line (e.g., Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro), Java Monster, Muscle Monster, Espresso Monster, Punch Monster, Juice Monster, and the Monster Hydro series (Energy Water, Super Sport, Super Fuel). Other significant brands feature Monster Dragon Tea, Reign Total Body Fuel, Reign Inferno Thermogenic Fuel, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play (stylized), Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator, Fury, and True North. Founded in 1985 under its previous name, Hansen Natural Corporation, the company rebranded to Monster Beverage Corporation in January 2012. Its corporate headquarters are located in Corona, California.
Financial Metrics — MNST PE Stock Valuation Data
PE Ratio (TTM)
44.7x
PEG Ratio
1.21
Earnings Yield
2.24%
ROE (TTM)
25.5%
Revenue/Share (TTM)
$8.99
Frequently Asked Questions
What is the PE ratio of MNST?
The trailing twelve-month PE ratio of MNST reflects how much investors pay per dollar of Monster Beverage Corporation's earnings. This metric is most useful when compared to Beverages - Non-Alcoholic peers and the company's own historical range.
Is MNST overvalued based on PE ratio?
MNST's PE of 44.7x combined with a PEG ratio of 1.21 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Beverages - Non-Alcoholic, a DCF analysis may be more appropriate.
How do I value MNST stock using PE ratio?
To value Monster Beverage Corporation using PE: (1) Compare the current PE (44.7x) against the Beverages - Non-Alcoholic median to assess relative pricing, (2) check the PEG ratio (1.21) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of MNST?
MNST's PEG ratio is 1.21, calculated by dividing the PE ratio (44.7x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for MNST stock valuation?
PE ratio gives a quick relative read — how MNST is priced versus Beverages - Non-Alcoholic peers. DCF provides an absolute value based on projected free cash flows. For MNST, with a strong ROE of 25.5%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See MNST DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Defensive valuationsP/E and DCF value MNST with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.