The Boston Beer Company DCF Stock Analysis.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.13%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.62%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 4.5%

Historical Data

Revenue growth in the last 10 years (CAGR): 11.17%

Earnings growth in the last 10 years (CAGR): -4.87%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 7.19%

Future Assumptions

End of Year FCF growth: 4%

Growth until end of 2026: 3%

Growth until end of 2034: 3%

Perpetual growth: 2%

Net Debt: -0.209B

Outstanding Stock Options Present Value Assumption: $0.012B

Assumptions used for the Black & Scholes model:

• Stock Price: $213
• Strike Price: $358.48
• Time to expiration: 5.3 years
• Risk Free Rate: 4.93%
• Volatility: 40%

Restricted Stock Units Present Value Assumption: $0.035B

Stock Valuation based on these assumptions: $357

Last update 02/01/2026

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in The Boston Beer Company (SAM) and I don’t plan to add a position in the coming days.