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Monster Beverage Corp. Founded in 1985 Previously known as Hansen Natural Corp Changed its name to Monster Beverage Corporation in Jan 2012 Headquartered in Corona, CA Takes up 1.4% of the market Gained volume in 2012 Competitors lost volume. Monster Beverage Corp. Brands include:
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Monster Beverage Corp • Founded in 1985 • Previously known as Hansen Natural Corp • Changed its name to Monster Beverage Corporation in Jan 2012 • Headquartered in Corona, CA • Takes up 1.4% of the market • Gained volume in 2012 • Competitors lost volume
Monster Beverage Corp • Brands include: • Monster Energy • Hansen’s • Peace Tea • Worx Energy • Blue Sky
Comparable Companies • Top 3 Competitors control 88% of the market • The Coca-Cola Company • Dr. Pepper Snapple • PepsiCo • Monster Beverage
Mod 6 Summary • Used Beta from analyst estimates .20 • Similar to Regression Analysis .18 • Used Calculated Enterprise Capital 11.89% • Bloomberg’s WACC 9.2% • Bloomberg states 0% cost of debt capital • No debt? • Bloomberg Beta (.86) is very different from analyst estimates and regression analysis
Takeaways • Sales Growth of 5% • Not sustainable • 2017 sales growth of 3.75% • 2018 sales growth of 2.25% (back to market rate) • DCF Model=REI Model • $3,691,635
Sources Cited • Photos from Google images • Yahoo Finance: MNST • http://www.beverage-digest.com/pdf/top-10_2013.pdf