Monster Beverage Corporation (MNST) DCF Valuation
Transparent DCF models put Monster Beverage Corporation (MNST)'s fair value in a range of $26.23 – $68.12 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $90.95 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $90.95, the market is pricing in roughly +22.8%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +10.5%. The price is betting on acceleration above its track record.
Current Price
$90.95
Fair-Value Range
$26.23 – $68.12
Market-Implied Growth
+22.8%/yr
vs +10.5% 5Y actual
MNST DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $1.4B · 0.98B shares · net cash $2.1B
Estimated Fair Value
$26.23
-71.2% vs $90.94
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $90.94; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $32.08 | $33.62 | $35.43 | $37.61 | $40.27 |
| 9.0% | $27.86 | $28.91 | $30.12 | $31.53 | $33.20 |
| 10.0% | $24.64 | $25.38 | $26.23 | $27.20 | $28.31 |
| 11.0% | $22.11 | $22.66 | $23.27 | $23.96 | $24.74 |
| 12.0% | $20.07 | $20.48 | $20.94 | $21.44 | $22.00 |
About Monster Beverage Corporation
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.
- Sector
- Consumer Defensive
- Industry
- Beverages - Non-Alcoholic
- CEO
- Hilton H. Schlosberg