      aswathdamodaran.blogspot.com · 2019-06-12
      · 2549d
    

Musings on Markets: The Beyond Meat Valuation

Aswath Damodaran analyzes Beyond Meat's post-IPO valuation, constructing a DCF model that values the company at $3.3 billion ($47/share) against a market price of $127/share. The article examines market sizing for plant-based meats, competitive positioning against Impossible Foods, and the risks of macro trend betting when the underlying business fundamentals remain unproven.

7 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

Cost of Capital

7.46%percent

Beyond Meat WACC assumption in valuation model reflecting risk profile

Global Meat Market Size

1 trillionUSD

Global meat market in 2018

Meatless Meat Market Forecast

5 to 8billion USD

2023 market size estimates across forecasters

Meatless Meat Market Size

1 to 5billion USD

2018 market estimate depending on product definition and geography

Operating Margin

13.22%percent

US food processing companies in 2018

Probability of Failure

15%percent

Beyond Meat over next four years requiring ~$500M capital

Revenue per Invested Capital

3.0ratio

target

Beyond Meat projected efficiency vs. typical food processing at 1.5x