Valuation of Beyond Meat

Tibor Kysucký

Master's thesis

Abstract:

The main goal of the thesis is to value Beyond Meat as of 31/12/2019. Beyond Meat operates in the niche plant-based meat alternatives market.The thesis consists of two main parts. In the first part, fundamental concepts and challenges associated with the valuation of growth company are explained. The second part focuses on the strategic analysis and valuation supplemented by theoretical concepts.Valuation of Beyond Meat is conducted based on a discounted cash flow model and relative valuation approach. The discounted cash flow model estimated price of USD 60.1 per share as of 31/12/2019. The relative valuation was conducted based on trading multiples and precedent transactions by applying enterprise value-to-sales multiple in 2020, resulting in USD 49.1 and USD 40.1 per share, respectively. Even after stretching the assumptions, both approaches estimated that Beyond Meat was overvalued as of 31/12/2019.

Abstract:

The main goal of the thesis is to value Beyond Meat as of 31/12/2019. Beyond Meat operates in the niche plant-based meat alternatives market.The thesis consists of two main parts. In the first part, fundamental concepts and challenges associated with the valuation of growth company are explained. The second part focuses on the strategic analysis and valuation supplemented by theoretical concepts.Valuation of Beyond Meat is conducted based on a discounted cash flow model and relative valuation approach. The discounted cash flow model estimated price of USD 60.1 per share as of 31/12/2019. The relative valuation was conducted based on trading multiples and precedent transactions by applying enterprise value-to-sales multiple in 2020, resulting in USD 49.1 and USD 40.1 per share, respectively. Even after stretching the assumptions, both approaches estimated that Beyond Meat was overvalued as of 31/12/2019

Keywords

Trading Multiples, Beyond Meat, Valuation, DCF model, Precedent Transactions

Keywords

DCF model, Beyond Meat, Valuation, Trading Multiples, Precedent Transactions

Language used: English

Date on which the thesis was submitted / produced: 2. 10. 2019

Thesis defence

• Date of defence: 5. 6. 2020
• Supervisor: Luboš Smrčka
• Reader: Jaroslav Schönfeld

Vysoká škola ekonomická v Praze

Master programme / field:
Ekonomika a management / International Management