Varun Beverages Ltd
BSE:540180
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Rane Holdings Ltd
NSE:RANEHOLDIN
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IN |
EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (43.8), the stock would be worth ₹515.05 (4% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 42.1 | ₹494.95 |
0%
|
| 3-Year Average | 43.8 | ₹515.05 |
+4%
|
| 5-Year Average | 38.4 | ₹451.11 |
-9%
|
| Industry Average | 30.8 | ₹362.1 |
-27%
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| Country Average | 23.3 | ₹273.31 |
-45%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
₹1.3T
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/ |
Jan 2026
₹38.3B
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= |
|
|
₹1.3T
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/ |
Dec 2026
₹45.1B
|
= |
|
|
₹1.3T
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/ |
Dec 2027
₹52B
|
= |
|
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₹1.3T
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/ |
Dec 2028
₹56.7B
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= |
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Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| IN |
|
Varun Beverages Ltd
BSE:540180
|
1.7T INR | 42.1 | 54.1 | |
| US |
|
Coca-Cola Co
NYSE:KO
|
321.1B USD | 24 | 25.1 | |
| US |
|
PepsiCo Inc
NASDAQ:PEP
|
210.4B USD | 16.1 | 24.4 | |
| MX |
|
Fomento Economico Mexicano SAB de CV
NYSE:FMX
|
203.2B USD | 50.6 | 181 | |
| US |
|
Monster Beverage Corp
NASDAQ:MNST
|
74.3B USD | 30.4 | 39.9 | |
| CN |
|
Nongfu Spring Co Ltd
HKEX:9633
|
541.4B HKD | 21.8 | 30.8 | |
| UK |
|
Coca-Cola Europacific Partners PLC
NASDAQ:CCEP
|
43.2B USD | 16.9 | 19.5 | |
| US |
|
Keurig Dr Pepper Inc
NASDAQ:KDP
|
36.1B USD | 14.4 | 18.6 | |
| MX |
|
Coca-Cola Femsa SAB de CV
NYSE:KOF
|
21.1B USD | 10.2 | 15.5 | |
| CH |
|
Coca Cola HBC AG
LSE:CCH
|
15.4B GBP | 13.4 | 18.6 | |
| MX |
|
Arca Continental SAB de CV
BMV:AC
|
347.4B MXN | 9.1 | 17.7 |
Market Distribution
| Min | 0.4 |
| 30th Percentile | 15.7 |
| Median | 23.3 |
| 70th Percentile | 34.7 |
| Max | 48 145.1 |
Other Multiples
Varun Beverages Ltd
Glance View
In the bustling world of beverages, where consumer preferences constantly evolve, Varun Beverages Ltd. has carved out a formidable presence. As one of the largest franchisees of PepsiCo outside the United States, the company plays a pivotal role in the bottling and distribution of popular soft drinks, including Pepsi, Mountain Dew, 7UP, and Mirinda. Established in 1995, the company has expanded its footprint across several continents, operating in countries such as India, Sri Lanka, Morocco, Zambia, and Nepal. Varun Beverages has capitalized on its strong relationship with PepsiCo to expand its portfolio beyond carbonated drinks, venturing into bottled water and non-carbonated beverages to meet diverse consumer demands. The company’s business model revolves around the mastery of the supply chain and an extensive distribution network that delivers beverages from the manufacturing floors to the fingertips of consumers. By maintaining tight control over operations—from procurement of raw materials to final distribution—Varun Beverages ensures high efficiency and cost-effectiveness. Revenue streams flow steadily from its ability to cater to a diverse clientele, encompassing retail outlets, restaurants, and other service-led industries. The synergy between production excellence and strategic market expansion has not only bolstered its revenue but also sealed its status as a major player in the beverage industry across its operating regions.
