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Suntory Beverage & Food (TSE:2587) Could Be 54% Undervalued As Vietnam Expansion Lifts Growth Hopes

Simply Wall St · 1d ago

Suntory Beverage & Food (TSE:2587) is back in focus after partner Suntory PepsiCo opened its largest Asian factory in southern Vietnam, a $300 million facility geared toward healthier beverage demand and automation in the region.

See our latest analysis for Suntory Beverage & Food.

Against this backdrop, Suntory Beverage & Food’s share price has shown mixed momentum, with a 30 day share price return of 8.02% contrasting with a year to date decline of 2.34%, while the 1 year total shareholder return sits at 6.75%.

If you are interested in other consumer and beverage stories tied to manufacturing and automation trends, it could be worth scanning the 12 top founder-led companies

Bulls point to Suntory Beverage & Food’s expanding Asia footprint and steady earnings growth, while bears highlight recent share price softness and mixed multi year returns. How does today’s valuation stack up against these competing views?

Price to Earnings of 16.2x: Is it justified?

On the numbers, Suntory Beverage & Food is trading on a P/E of 16.2x, which screens as inexpensive relative to both its own fair ratio and peers at the last close of ¥4,634.

The P/E multiple compares the current share price with earnings per share. For a consumer beverages company like Suntory Beverage & Food, it effectively reflects what investors are willing to pay today for each unit of current profit.

Here, the current P/E of 16.2x sits below the estimated fair P/E of 20.7x and below the peer average of 42.1x. This signals the market is assigning a lower earnings multiple than both the regression based fair value level and the broader Asian Beverage group.

Against the Asian Beverage industry average P/E of 18.5x, the gap is clear, and the fair ratio indicates a level the market could potentially converge toward if company and sector conditions align.

Explore the SWS fair ratio for Suntory Beverage & Food

Result: Price-to-Earnings of 16.2x (UNDERVALUED)

However, Suntory Beverage & Food still faces risks, including recent share price softness over 90 days and 3 years, as well as a sizable 54.23% intrinsic discount signal.

Find out about the key risks to this Suntory Beverage & Food narrative.

Another View: SWS DCF Model Paints A Different Picture

While the P/E of 16.2x makes Suntory Beverage & Food look inexpensive, the SWS DCF model is even more generous, putting fair value at ¥10,124.59 versus the current ¥4,634. That implies a very large valuation gap. Is the market being cautious or overly pessimistic?

Look into how the SWS DCF model arrives at its fair value.

2587 Discounted Cash Flow as at Jul 2026
2587 Discounted Cash Flow as at Jul 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Suntory Beverage & Food for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 20 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

The valuation debate around Suntory Beverage & Food is clearly split, so this is a moment to look at the numbers yourself and decide quickly where you stand. To see what is currently fueling optimism around the stock, review the 4 key rewards

Looking for more investment ideas beyond Suntory Beverage & Food?

If Suntory Beverage & Food has sharpened your focus on quality and pricing, this is a good moment to broaden your watchlist using targeted screeners.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.