A prior article of mine noted how Monster Beverage (MNST) was trading at much higher valuation ratios than its peers. The article demonstrated that ridiculous extrapolation of growth rates would be needed to somehow justify those multiples.
Since that article was published, the stock has fallen from grace based on recent financial results and legal issues hitting the news. How do the firm's valuations stack up now?
Bad News for Monster
Monster Beverage fell sharply by 11% to a 52-week low after announcing disappointing third-quarter numbers. Third-quarter income did increase by 4.6% to $86.1 million, up from $82.6 million last year, but the sales increase of 14% was less than the market estimate of $578.4 million. This was the slowest revenue growth for the company since 2010.
One of the reasons for the fall in revenue is the severe scrutiny Monster is facing because five people died
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