Entering text into the input field will update the search result below

Anheuser-Busch InBev: Trading Short-Term Risk For Sustainable Value

Mar. 02, 2020 4:51 PM ETAnheuser-Busch InBev SA/NV (BUD), BUDFF8 Comments
The European View profile picture
The European View


  • Anheuser-Busch Inbev is in a transitional phase. In addition to the high debts, there is now also the coronavirus.
  • In the first two months of 2020 alone, revenue and EBITDA were affected in the triple-digit millions.
  • Against this background, the company is not a compulsory purchase at the moment. However, long-term investors may find some value in the company.


The last few days have been bad times for stock markets around the world, but all the more so for Anheuser-Busch InBev (BUD) investors. When the company published the effects of the coronavirus on its sales and profit forecast, stock prices plunged to the bottom, clearly underperforming the market, both in the short and long term:

Of course, the further effects of the virus are not yet foreseeable. But I think that investors with a long-term horizon will find a valuable investment opportunity here. However, they must have the psychological strength to be able to deal with short-term fluctuations and book losses (depending on how the economy develops).

What happened?

By the question I do not, of course, mean the coronavirus specifically, which is the subject of much public debate. Rather, I mean the cause of the sharp fall in prices. Let us recapitulate the development briefly. The share price had already performed badly before, and all the gains made in the meantime (in 2019) were lost:

The first negative momentum came in October 2019, when the company had already lowered its expectations and announced only moderate growth instead of strong growth. In my analysis of the figures and the then-current situation, I came to the following conclusion.

Overall, I still see the company as a value company. Nevertheless, I don't expect any price jumps in the short term. The global headwinds do not vanish so quickly and will last for an uncertain time. But in the long term prices have been reached again, which are quite attractive for the purchase of an entry position or a repurchase.

Since then, the share price has deteriorated even further, which is why I'm glad I didn't make a buy recommendation.

(Source: Analysis from October)

Besides, however, the

This article was written by

The European View profile picture
Runner of the TEV Blog | Private InvestorI am a long-term oriented investor and in my early thirties. I hold a law degree and a doctorate in law and love investing and talking about my and others' investments. I regularly write about my research and investments on various investor platforms and the TEV Blog. **My articles represent my opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions.**

Analyst’s Disclosure: I am/we are long BUD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (8)

lookdow profile picture
Party over but will start again, BUD should be on your buy list!
Maybe BUD and KO should merge.
This is what investing in Corona looks like.
I am wondering if this virus will hurt the Corona brand thouhh, although that thought might seem a bit outlandish for some ;)
Special Companies Watch profile picture
great value, including the Corona brand in Europe and China, but probably better entry points as the health crisis cancels more social events.
Moats and Income profile picture
Great entry price - given once in a lifetime health epidemic....it will take a year+, but easily worth the wait...at the end they will achieve debt reduction and have improved macroeconomic tailwinds...back to $100 within 2 years..while paying divvys...

BUD + ABEV (they own most of) produce 1 of every 3 beers drank on planet earth each day...:)
I just bought some...on the basis that we human beings need to drink beer all the life...
Big_Al_Svid profile picture
Every time you think they have hit rock bottom, they manage to find a new low... What's the target now? 40 - 45 dps????
Planing to start to build my position around 40€
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About BUD

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on BUD

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.