Enterprise Value (EV)
Current Enterprise Value (EV)
Monster Beverage Corp., current enterprise value calculation
| Current share price (P) | $54.67 |
| No. shares of common stock outstanding | 1,041,728,228 |
| US$ in thousands | |
| Common equity (market value)1 | 56,951,282) |
| Total equity | 56,951,282) |
| Add: Current finance lease liabilities (per books) | 6,449) |
| Add: Noncurrent finance lease liabilities (per books) | 19) |
| Total equity and debt | 56,957,750) |
| Less: Cash and cash equivalents | 2,297,675) |
| Less: Short-term investments | 955,605) |
| Enterprise value (EV) | 53,704,470) |
Based on: 10-K (reporting date: 2023-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 54.67 × 1,041,728,228
Historical Enterprise Value (EV)
Monster Beverage Corp., EV calculation
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Monster Beverage Corp. Annual Report.
3 2023 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 59.10 × 1,040,636,235
The financial data indicates a significant expansion in the valuation of the company between 2019 and 2023. Both market capitalization and enterprise value exhibit a strong overall upward trajectory, characterized by a period of rapid growth, a brief correction, and a subsequent sustained increase.
- Enterprise Value Trends
- Enterprise value grew from 32.18 billion US$ in 2019 to 58.25 billion US$ by the end of 2023. A notable surge occurred between 2019 and 2020, where the value increased by approximately 37%. Although a slight contraction was observed in 2021, the value recovered strongly in 2022 and 2023, culminating in an 81% total increase over the five-year period.
- Market Capitalization and Equity
- Common equity market value mirrors the movements of the enterprise value, rising from 33.51 billion US$ in 2019 to 61.50 billion US$ in 2023. The absolute alignment between common equity market value and total equity suggests a capital structure where market valuation is the primary component of equity, with no significant impact from minority interests or preferred shares.
- Capital Structure and Debt Profile
- A comparison between total equity and total equity and debt reveals a negligible reliance on debt financing. The difference between these two figures remains minimal across all reported years, indicating that the company operates with an exceptionally low leverage ratio.
- Net Debt and Cash Position
- A consistent pattern is observed where the enterprise value remains lower than the market value of common equity. This divergence indicates a negative net debt position, signifying that the company maintains substantial cash and cash equivalents that offset its total debt obligations, thereby reducing the overall enterprise value relative to the equity value.
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