VBL DCF Valuation: Unlocking Intrinsic Value

Providing a clear, data-driven assessment of Varun Beverages Limited (VBL)’s true financial value

In this discounted cash flow (DCF) valuation, I aim to offer you a clear, objective assessment of Varun Beverages Limited (VBL)’s intrinsic value.

As PepsiCo’s second-largest franchisee outside the U.S., VBL drives growth through a diversified beverage portfolio and operations spanning India, Nepal, Sri Lanka, and African markets. My analysis evaluates VBL’s operational performance and strategic initiatives to project its future cash flows.

By applying a rigorous DCF framework and comparing the results to VBL’s current market price, I’ll determine whether the market fairly reflects its potential.

Let’s dive into the financial mechanics to uncover VBL’s value as an investment opportunity.

Part 1: Business Analysis – Unpacking VBL's Refreshing Strategy

Let’s start by dissecting VBL's business model. As PepsiCo's second-largest franchisee outside the US, VBL has a robust presence across India, Nepal, Sri Lanka, and several African markets. Their strategy is a blend of widespread distribution, strategic acquisitions, and a diversified product portfolio.

Now.. before we proceed, pls download VBL’s financial model below so you can track the numbers as we go along: