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Ambev S.A. (ABEV): A Bull Case Theory 

We came across a bullish thesis on Ambev S.A. on CompoundingLab’s Substack. In this article, we will summarize the bulls’ thesis on ABEV. Ambev S.A.'s share was trading at $2.57 as of December 1st. ABEV’s trailing and forward P/E were 13.45 and 13.26 respectively according to Yahoo Finance.

[caption id="attachment_605087" align="aligncenter" width="750"] Pixabay/Public Domain[/caption]

Ambev appears undervalued, trading at roughly a 23% discount to fair value, implying potential 9% annual alpha if the gap closes within three years. The valuation assumes a 10-year and...