According to "Boston Beer Co., Inc." by Amy P. Hutton and Christopher Charron:

1. Evaluate and analyze Boston Beers performance relative to its peers. Calculate and analyze ROE, gross margin and cost of goods sold, operating margin, and sales, general, and administrative expenses.

2. What should its IPO price be? Use Petes P/E ratio to formulate a value. Don't forget to include premium or discount to the calculation. What is their P/B ratio and their P/E using P/B? If you calculate Market Capitalization, does the P/E make sense in relation to the other craft brewers and the industry?

3. Do you think the total market value of Redhook, Petes, and BBC (at your proposed IPO price) makes sense, given the total size and profitability of the beer industry, and the craft-brewing segment? Calculate and compare these approaches: Market Capitalization (already done), Enterprise Value, Terminal Value using the Perpetuity Growth Method, and Discounted Cash Flows for Stock Intrinsic Value. What profitability and growth assumptions are necessary to justify the total market value of these three craft brewers?

4. In late December 1995, sell-side analysts were forecasting long-term growth of 25 to 40 percent for the craft-brewing segment. How achievable are these growth targets? What factors are likely to influence analysts growth forecasts, both internal and external?