To justify its current valuation, with a price-to-earnings ratio around 35, Boston Beer will either need to muscle aside its competitors to capture closer to half of all craft beer sales, or the entire craft segment will need to double or triple again even as the overall beer market declines.
The article Is Boston Beer Overvalued? originally appeared on Fool.com and is written by Daniel Ferry.
Fool contributor Daniel Ferry has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Boston Beer.
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