As of December 15, 2025, Monster Beverage Corp's estimated intrinsic value ranges from $30.94 to $90.07 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $90.07 | +21.8% |
| Discounted Cash Flow (5Y) | $72.69 | -1.7% |
| Dividend Discount Model (Multi-Stage) | $67.71 | -8.5% |
| Dividend Discount Model (Stable) | $86.82 | +17.4% |
| Earnings Power Value | $30.94 | -58.2% |
Is Monster Beverage Corp (MNST) undervalued or overvalued?
With the current market price at $73.97, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Monster Beverage Corp's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.48 | 0.56 |
| Cost of equity | 6.1% | 8.0% |
| Cost of debt | 4.5% | 122.1% |
| Tax rate | 22.6% | 23.8% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 6.1% | 8.4% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $73 | $68,725M | 87.7% |
| 10-Year Growth | $90 | $85,706M | 76.8% |
| 5-Year EBITDA | $45 | $41,745M | 79.7% |
| 10-Year EBITDA | $59 | $55,479M | 64.2% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $1,970M |
| Discount Rate (WACC) | 8.4% - 6.1% |
| Enterprise Value | $23,351M - $32,527M |
| Net Debt | $(2,293)M |
| Equity Value | $25,643M - $34,820M |
| Outstanding Shares | 977M |
| Fair Value | $26 - $36 |
| Selected Fair Value | $30.94 |
| Metric | Value |
|---|---|
| Market Capitalization | $72270M |
| Enterprise Value | $69977M |
| Trailing P/E | 41.85 |
| Forward P/E | 40.06 |
| Trailing EV/EBITDA | 11.85 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.01 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $27.02 |
| Discounted Cash Flow (5Y) | 25% | $18.17 |
| Dividend Discount Model (Multi-Stage) | 20% | $13.54 |
| Dividend Discount Model (Stable) | 15% | $13.02 |
| Earnings Power Value | 10% | $3.09 |
| Weighted Average | 100% | $74.85 |
Based on our comprehensive valuation analysis, Monster Beverage Corp's intrinsic value is $74.85, which is approximately 1.2% above the current market price of $73.97.
Key investment considerations:
Given these factors, we believe Monster Beverage Corp is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.