What is BYND's DCF valuation?

Beyond Meat Inc (BYND) DCF Valuation Analysis

Executive Summary

As of May 27, 2025, Beyond Meat Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $2.85, this represents a potential upside of -3624.8%.

Key Metrics Value
DCF Fair Value (5-year) $0.00
DCF Fair Value (10-year) $0.00
Potential Upside (5-year) -4332.1%
Potential Upside (10-year) -3624.8%
Discount Rate (WACC) 4.4% - 5.3%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $326 million in 12-2024 to $397 million by 12-2034, representing a compound annual growth rate of approximately 2.0%.

Fiscal Year Revenue (USD millions) Growth
12-2024 326 5%
12-2025 297 -9%
12-2026 312 5%
12-2027 318 2%
12-2028 325 2%
12-2029 331 2%
12-2030 345 4%
12-2031 352 2%
12-2032 368 5%
12-2033 376 2%
12-2034 397 6%

Profitability Projections

Net profit margin is expected to improve from -49% in 12-2024 to -26% by 12-2034, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
12-2024 (160) -49%
12-2025 (133) -45%
12-2026 (127) -41%
12-2027 (117) -37%
12-2028 (107) -33%
12-2029 (97) -29%
12-2030 (99) -29%
12-2031 (99) -28%
12-2032 (101) -27%
12-2033 (100) -27%
12-2034 (103) -26%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $61 million. Projected CapEx is expected to maintain at approximately 14% of revenue.

2. Depreciation & Amortization

Depreciation is based on an average useful life of 5 years for capital assets.

Fiscal Year D&A (USD millions)
12-2025 55
12-2026 36
12-2027 31
12-2028 38
12-2029 45
12-2030 47

3. Working Capital Requirements

Net working capital is expected to increase gradually, with projected changes affecting free cash flow.

Components Average Days
Days Receivables 31
Days Inventory 150
Days Payables 47

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
9M/2025 (61) (0) 32 (6) (87)
2026 (94) (0) 45 (9) (130)
2027 (90) (0) 46 3 (139)
2028 (73) (0) 47 (1) (118)
2029 (56) (0) 48 (3) (101)

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 4.4% - 5.3%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 3.0% - 4.2%)
  • Terminal EV/EBITDA Multiple: 15.2x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 0.00 -4332.1%
10-Year DCF (Growth) 0.00 -3624.8%
5-Year DCF (EBITDA) 0.00 -100.0%
10-Year DCF (EBITDA) 0.00 -100.0%

Enterprise Value Breakdown

  • 5-Year Model: $(8,169)M
  • 10-Year Model: $(6,629)M

Investment Conclusion

Is Beyond Meat Inc (BYND) a buy or a sell? Beyond Meat Inc is definitely a sell. Based on our DCF analysis, Beyond Meat Inc (BYND) appears to be overvalued with upside potential of -3624.8%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.

Key investment drivers include:

  • Expanding profit margins (from -49% to -26%)
  • Steady revenue growth (2.0% CAGR)
  • Strong free cash flow generation

Investors should consider reducing exposure at the current market price of $2.85.