Monster, Coca-Cola, And Pepsi Investment Prospect Analysis
DOI:
https://doi.org/10.54691/bcpbm.v39i.3990Keywords:
Beverage industry, Investment decision, Company value, Equity beta, WACC.Abstract
In the business world, an investor needs to decide which company is better to invest in in the same industry. In the beverages industry, there are a large number of companies which means it is hard to choose the best company to invest in. Therefore, this research compared three companies in the beverages industry, Coca-Cola, Pepsi, and Monster, to find out which company is not advised to invest. As stated by Templin in the Method of Investment analysis, investment analysis is the analysis of the financial information of a company to make investment decisions. There are four basic approaches to investment analysis, fundamental analysis, technical analysis, quantitative analysis, and behavioral analysis. This research collected financial information from the three companies and used financial formulas in order to calculate the business risk of each company to find out a company which has the highest business risk. the research found that Monster had the highest business risk while the other two have a lot lesser business risk compared to the monster. Overall Monster is not advised to invest, and the other two companies can be considered.
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