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You collect the following information about Anheuser-Busch and its comparable companies. (Note that the mean and median of the benchmark firms have been calculated for

You collect the following information about Anheuser-Busch and its comparable companies. (Note that the mean and median of the benchmark firms have been calculated for you).

Company Name Trailing P/E Expected Growth Beta
Anheuser-Busch 13.57 7.2% 1.1
Benchmark firms:
Coca-Cola Bottling 29.18 9.5% 0.59
Molson Inc. Ltd. 'A' 43.65 15.5% 0.65
Corby Distilleries Ltd. 16.24 7.5% 0.7
Chalone Wine Group 21.76 14.0% 0.84
Andres Wines Ltd. 'A' 8.96 3.5% 0.87
Todhunter Int'l 8.94 3.0% 0.9
Brown-Forman 'B' 10.07 11.5% 1.05
Coors (Adolph) 'B' 223.02 10.0% 1.04
PepsiCo, Inc. 33 10.5% 1.15
Coca-Cola 44.33 19.0% 1.22
Boston Beer 'A' 10.59 17.1% 1.4
Whitman Corp. 25.19 11.5% 1.45
Mondavi (Robert) 'A' 16.47 14.0% 1.59
Coca-Cola Enterprises 37.14 27.0% 1.81
Hansen Natural Corp 9.7 17.0% 2.06
Benchmark Mean 35.88 12.7% 1.15
Benchmark Median 21.76 11.5% 1.05

The current market price of Anheuser-Busch stock is $54 and its most recent EPS is $3.98. Based on the information given, discuss your valuation of Anheuser-Busch. Specifically, what is your recommendation (Buy, Hold, Sell) and why?

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