MNST Value Scorecard - Monster Beverage

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

43/60

moderate value score

Earnings & returns

EPS Trend

5/5

Diluted EPS: $0.56 (2022), $0.77 (2023), $0.81 (2024), $0.97 (2025). It rose every year; the framework scores that as 5.

ROE Trend

5/5

ROE (net income / common equity): 17.0% (2022), 19.8% (2023), 25.3% (2024), 23.1% (2025). Median 21.5%, lowest 17.0%; the framework scores a median above 20% as 5.

ROIC

5/5

ROIC of 28.3%: operating income of $2.42B divided by $8.54B of capital (total assets $9.99B minus current liabilities $1.45B), fiscal year to Dec 31, 2025, as filed in the 10-K (SEC EDGAR). The framework scores above 20% as 5.

Profit Margins

5/5

Net margin of 23.1%; the framework scores above 20% as 5; gross margin 55.5%, operating margin 29.2%.

Balance sheet & cash

Debt-to-Equity

5/5

Net cash: total debt $92.93M, total cash $3.42B. The framework scores a net cash position as 5.

Free Cash Flow

5/5

Free cash flow (operating cash flow minus capital expenditure): $675.55M (2022), $1.48B (2023), $1.62B (2024), $1.94B (2025). It rose every year; the framework scores that as 5.

Retained Earnings

4/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $9.00B (2022), $5.94B (2023), $7.45B (2024), $9.35B (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

Valuation models

Graham IV

1/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $1.08 x (8.5 + 2 x 12.2) x (4.4 / 4.5) = $34.74. Current price $45.73; price is 31.6% above the model value.

DCF Value

1/5

FCF/share = $0.858, stage 1 growth = 7.8% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $4.04, PV of terminal value = $11.41, DCF value = $15.45. Current price $45.73; price is 195.9% above the model value.

Margin of Safety

1/5

Graham value $34.74 (price is 31.6% above the model value); DCF value $15.45 (price is 195.9% above the model value).

Price-to-Book

1/5

P/B of 9.57; the framework scores above 5.0 as 1.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 10 of 10 years (2016-2025); lowest 21.7%, highest 32.7%.

Gross margin, each year

Between 50.3% and 63.7% over 10 years (a range of 13.4 points).

Competition, in the company’s own words · 10-K filed Feb 27, 2026

The beverage industry is highly competitive. The principal areas of competition are pricing, packaging, development of new products and flavors as well as promotional and marketing strategies. Our products compete with a wide range of drinks produced by a relatively large number of companies. Important factors affecting our ability to compete successfully include brand and product image, taste and flavor of

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

5/5

Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $5.31B paid out against $5.72B of free cash flow (pass); total debt not available; shares outstanding 2.09B to 1.96B, down 6.4% (pass). 3 of 3 tests passed; the framework scores that as 5.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $1.08, g = 12.2%, Y = 4.5
    IV = $34.74
    Current price $45.73 vs Graham value $34.74 — price is 31.6% above the model value.

  DCF:
    FCF/share = $0.858
    Stage 1 growth = 7.8% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $0.925 → PV $0.841
      Y2: $0.997 → PV $0.824
      Y3: $1.075 → PV $0.808
      Y4: $1.159 → PV $0.792
      Y5: $1.249 → PV $0.776
    Stage 1 PV sum = $4.04
    Terminal value at end of Y5 = $18.38
    PV of terminal value = $11.41
    DCF value = $15.45
    Current price $45.73 vs DCF value $15.45 — price is 195.9% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $45.73. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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MNST · Monster Beverage

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