Capital markets may have overcapitalized the craft brewing industry during a flurry of new IPOs. In the context of this "hot" IPO market each individual company's valuation may seem reasonable. However, after careful analysis of each company's financial statement and upon consideration of analysts' forecasts of the industry's growth prospects, it is unclear whether the craft brewing industry is overcapitalized. This could be another "hot" then "crash" IPO industry, like biotech or the computer disk drive industry.
To expose students to business analysis and valuation of Boston Beer Co. (BBC) and its competitors in the craft brewing industry. Provides an opportunity for students to conduct a complete financial statement analysis at BBC using four steps: business strategy analysis, accounting analysis, financial analysis, and prospective analysis.
Analytics; Financial ratios; IPO; Stock offerings; Valuation