Why Ambev SA (ABEV) Stock Is A Buy? Acquirer’s Multiple Stock Screener Analysis

As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.

One of the cheapest stocks in our Stock Screeners is:

Ambev SA (ABEV)

Ambev is the largest brewer in Latin America and the Caribbean and is Anheuser-Busch InBev’s subsidiary in the region. It produces, distributes, and sells beer and PepsiCo products in Brazil and other Latin American countries and owns Argentina’s largest brewer, Quinsa. Ambev was formed in 1999 through the merger of Brazil’s two largest beverage companies, Brahma and Antarctica. In 2004, Ambev combined with Canadian brewer Labatt, giving Interbrew (now AB InBev) a controlling interest of 61.8% as at the end of 2023.

A quick look at the share price history (below) over the past twelve months shows that the price is down 18.90%. Here’s why the company is undervalued.

ABEV data by YCharts

Key Stats

Market Cap: $37.01 Billion

Enterprise Value: $34.61 Billion

Operating Earnings

Operating Earnings: $3.43 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 10.10

Free Cash Flow (TTM)

Free Cash Flow: $3.75 Billion

FCF/EV Yield %:

FCF/EV Yield: 10.12

Shareholder Yield %:

Shareholder Yield: 6.50

Other Indicators

Piotroski F Score: 6.00

Dividend Yield: 6.40

ROA (5 Year Avge%): 12