Brewdog shares anyone?

[Baldbrewer]

Hi Guys,
I understand Brewdog are fundraising again by selling B type shares at £95 each.
I just wondered if anybody has already invested in these guys? :

 

[calumscott]

No, but on past performance I think its a decent punt.

Have they said what the financing is for this time? Last time it was the new brewery. I know they got about 3x the land they needed to provide further for future expansion - is this the first brewery extension to the Ellon plant maybe?

If it is, then you're looking at a decent ramp up in output and, I would imagine given that the craft beer scene is still expanding rapidly, a decent return. If I had the spare capital I would be tempted.

If nothing else the AGM looks like a hoot!

 

[Dunfie]

Hi Guys,
I understand Brewdog are fundraising again by selling B type shares at £95 each.
I just wondered if anybody has already invested in these guys? :

I got some shares in the first IPO a couple of years ago. It's not really an investment where you might expect a return (at least not in the short to medium term) as the shares are not publicly traded and at the moment there isn't even a facility to trade privately or through brewdog. There is also some basic fundamentals that don't really add up for a basic investment perspective - the company value is currently estimated at around 112m whereas the profit is around 500k which equates to a p/e of 224 :shock: Perhaps given the potential growth this is to be expected but not really offering an opportunity to see some major share growth.

However I don't think brewdog are promising a big return on investment as they are looking for you to invest in the image. If you regularly buy their beers or live near a brewdog pub then you will receive lifetime discounts and also invites to buy beer that is not available to the general public. I've also heard that the AGM and other shareholders events are good value if you can get yourself to Aberdeen.

So you really need to think of it's buying into a beer club. There may be some dividends and share growth in the future but I don't think these are the reasons that you buy these shares.

 

[calumscott]

the company value is currently estimated at around 112m whereas the profit is around 500k which equates to a p/e of 224 :shock:

Companies are valued as multiples of turnover + assets. No idea what brewers would go for as a multiple but upwards of 10X is normal in tech which would put turnover at around 10-12M.

Sounds about right to me.

 

[Dunfie]

the company value is currently estimated at around 112m whereas the profit is around 500k which equates to a p/e of 224 :shock:

Companies are valued as multiples of turnover + assets. No idea what brewers would go for as a multiple but upwards of 10X is normal in tech which would put turnover at around 10-12M.

Sounds about right to me.

Normally companies are valued as multiples of annual adjusted net profit not on turnover.

 

[calumscott]

Ah... Must be different for tech co's then. TBH I know FA about any other sectors...