Stock Valuation Methodology
Beer Score compares the published valuation estimate with the published market price. These are educational model estimates, not recommendations or price targets.
Score Formula
Beer Score = round(valuation estimate ÷ market price × 100), capped between 0 and 100. The score does not quantify investment safety or predict future returns.
| Band | Score |
|---|---|
| Pure Beer | 80–100 |
| Good Pour | 60–79 |
| Getting Foamy | 40–59 |
| All Foam | 0–39 |
Valuation Sources
Each available stock page identifies a dated published Foam Engine model. Reproducible arithmetic does not independently attest filing lineage or freshness. Companies without a reproducible model have no valuation or score and are excluded from rankings. Fixed fallback valuations are not published.
JustTheBeer DCF estimate using owner-earnings with normalized maintenance capex (lowest historical capex/revenue ratio treated as structural maintenance need). Conservative uniform assumptions: 10% discount rate, 8% growth, 15x terminal multiple — high-quality compounders may justify premium assumptions this model does not credit. Share-based comp is not subtracted. This is one model's estimate, not a definitive valuation; reasonable methods produce a wide range.
Data and Dates
Market prices are indicative reference prices from public providers, not official exchange feeds. Daily publishing normally occurs after the US market close. Filing period, filing date, model export date, quote observation time and publication time are distinct. The snapshot timestamp does not establish when a quote was observed. Check the dates shown on each page. Missing financial details are marked unavailable rather than copied from older examples.
Model Limitations
Maintenance capital expenditure estimates can understate reinvestment needs. Uniform growth and discount assumptions can misrepresent individual businesses, particularly financial companies, fast-growing companies, and businesses with volatile cash flows. Share-based compensation is not subtracted in the current disclosed model. A high score does not establish that a stock is cheap or safe.
History and Scenarios
Sensitivity and reverse DCF are shown only when exported owner-earnings inputs reproduce the published model value within one cent. We discount five projected annual owner-earnings flows plus a terminal multiple, divided by filed shares outstanding. The scenario table varies growth and discount rates; reverse DCF solves for growth with the other assumptions fixed. History charts and score changes include only model-source observations from actual dated published snapshots, deduplicated by UTC publication date and retained for up to 90 calendar days. Available history counts and date ranges are shown; gaps are not filled or backtested.
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