These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Budweiser Brewing Company APAC Limited (HKG:1876) share price is up 18% in the last 1 year, clearly besting the market decline of around 23% (not including dividends). That's a solid performance by our standards! Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.

Check out our latest analysis for Budweiser Brewing Company APAC

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the last year Budweiser Brewing Company APAC grew its earnings per share (EPS) by 29%. It's fair to say that the share price gain of 18% did not keep pace with the EPS growth. So it seems like the market has cooled on Budweiser Brewing Company APAC, despite the growth. Interesting.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that Budweiser Brewing Company APAC has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.

A Different Perspective

It's nice to see that Budweiser Brewing Company APAC shareholders have gained 19% over the last year, including dividends. A substantial portion of that gain has come in the last three months, with the stock up 15% in that time. This suggests the company is continuing to win over new investors. Is Budweiser Brewing Company APAC cheap compared to other companies? These 3 valuation measures might help you decide.

Of course Budweiser Brewing Company APAC may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.