Bottling COMPS Analysis

Introduction:
I've linked my Excel [SOURCE], the switch in cell B1 is adjustable so e.g. 2 is for Coca Cola FEMSA, it will show you the pricing of Coca Cola FEMSA under Revenue, EBIT and PE ratio for median and 75th percentile.  Not really sure if linking works, so here's the link: https://www.dropbox.com/scl/fi/n8e5yc5kcrkpj67gt6dgp/Bottling-COMPS.xlsx?dl=0&rlkey=o3khqi16u1ewougjw351f8o8y

Bottling is a separate arm of the soft drink industry. Companies usually outsource this to focus on what they do best in, producing the syrup. The bottling industry gets the syrup from e.g. KO and bottles it before selling it to consumers e.g. Supermarkets. I'll be zooming in to 1 company that particularly stands out Thai Beverage(Y92.SI). 

Comparable Companies:

The main criteria I had when selecting comparable companies was Market Cap and Revenue Size. My comparable companies are Arca Continental (AC.MX), Coca Cola FEMSA (KOF), Coca-Cola Consolidated (COKE), National Beverage Corp. (FIZZ), Thai Beverage (Y92.SI) and PT Indofood (ICBP.JK)

Assumptions:

1) Share price taking 1 Month Average.
2) Only Cash + Marketable Securities are taken as Cash.
3) All interest bearing debt are taken as Liability.
4) Multiples are based on FY-22


Valuation:

Looking at all 3 multiples (Revenue, EBIT and P/E) Y92.SI is actually below median for all 3 multiples. And when reconciling back to median and 75th percentile pricing, Y92.SI is undervalued by 22% as of 1 month average stock price. 
[SOURCE]

Conclusion:
Ultimately, I price Y92.SI at USD 0.73. Using EBIT multiple for the 75th percentile.

Y92.SI is quite underpriced using comps valuation, the reason is probably due to poor H1 beer sales which was worse than analyst's expectations. So I'd use EBIT multiple over the other 2 as the beverage industry is a mature one and the main differentiator between companies should be how efficiently they are running their companies which is captured using the EBIT multiple as it takes away consideration from capital structure which may differ between companies. PE ratio is not employed because it's distorted by extraordinary pessimism of the market towards Y92.SI, but the price derived from PE ratio and EBIT multiple are quite close so the difference is quite meagre. 

Given that as of 2021, based on revenue Y92.SI was one of the largest 10 companies producing beer. So given that Y92.SI has a size advantage I would use the 75th percentile rather than the median pricing.

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