Monster Beverage

Methodology

Monster Beverage's energy drink category leadership and Coca-Cola distribution partnership create relatively predictable growth driven by brand strength and geographic expansion. Innovation in flavors and formats provides ongoing momentum. The calculation works well for this branded beverage company with clear volume and pricing growth drivers.

Methodology

Monster consistently commands premium PEG ratios reflecting exceptional category positioning, pricing power, and growth runway in energy drinks globally. While ratios appear expensive versus traditional beverage companies, category leadership and margin expansion justify valuations. Compare to Monster's historical range and Red Bull's implied valuation rather than mass-market soda manufacturers.

Methodology

Monster pays no dividend, making PEGY equal to PEG as management prioritizes reinvestment in marketing, innovation, and international expansion. Capital allocation focuses entirely on growth initiatives given substantial category opportunities. For this growth brand, earnings reinvestment in market share gains matters far more than current shareholder income.