Hardware FixRecommendedDevice not working? Your driver may be the problemCheck updates for common hardware issues.Fix DriversOctober DealsAmazon USOctober deal check: compare before you payAmazon US: current deals, useful picks and tech finds.Check DealsWindows FixRecommendedWindows errors stealing your time? Find the fix fastScan stability, cleanup and performance issues.Fix Now×
Skip to content
The Finance Base
Australian pubs

How to Value an Australian Pub and Liquor Retailer Using Comparable Companies

A practical framework for valuing a combined pub and liquor retailer: choose comparables by segment, normalize earnings and leases, and reconcile enterprise value to equity.

By TheFinanceBase Team 5 min read

What’s actually slowing this PC down?

Pick the symptom - the matching free tool is one click away.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Value an Australian pub and liquor retailer with a sum-of-the-parts comparable-company analysis: assess liquor retail, pubs and hotels, drinks production, and property separately, then reconcile central costs, debt, lease liabilities, and non-operating assets. No single listed company is a direct comparable for Endeavour Group’s combined business, and a credible valuation depends on matching both the peer businesses and their accounting treatment.

Why a sum-of-the-parts approach fits

A liquor retailer and a pub operator earn revenue in different ways and carry different operating, capital, and property risks. Drinks production or owned brands can add another distinct business. Applying one headline multiple to the whole group can obscure those differences. Instead, estimate enterprise value for each operating segment using the closest available public comparables, then combine the estimates and bridge from enterprise value to equity value.

Endeavour Group’s FY26 annual report is a useful illustration of the scale and mix involved, not a valuation proxy for every Australian pub and bottle-shop business. For the 52 weeks ended 28 June 2026, Endeavour reported A$12.212 billion of revenue from sale of goods and services, comprising A$10.0 billion in retail sales and A$2.2 billion in hotel sales. As at 28 June 2026, it operated 288 Dan Murphy’s stores, 1,451 BWS stores, and 351 licensed hotel venues. In FY26, comparable sales grew 0.5% at Dan Murphy’s and BWS combined and 4.4% at hotels. These figures describe operating scale and recent trading, not market valuation inputs (Endeavour Group FY26 Annual Report).

Choose comparables by business segment

Endeavour’s 2021 demerger materials said there was no directly comparable listed company for the combined group. They identified different reference companies for its retail, drinks, and hotel operations. Treat those names as historical starting points for thinking about peer selection—not as a current, ready-made peer set or evidence of current trading values (Endeavour Group demerger information).

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Segment Historical reference points What to compare Important mismatch
Liquor retail Woolworths Group, Coles Group, and Metcash Comparable sales growth, gross margins, labour and occupancy costs, online sales, store productivity, and capital intensity Woolworths and Coles are diversified supermarkets with liquor exposure; Metcash also has wholesale operations.
Pubs and hotels Redcape Hotel Group Venue count and type, same-venue sales, gaming versus food and beverage contribution, accommodation, margins, leases, maintenance capex, and regulatory geography A hotel operator is not equivalent to a combined pub-and-liquor retailer.
Drinks production or owned brands Treasury Wine Estates and Australian Vintage Brand and product mix, scale, margins, and production economics Wine producers differ from a retailer-owned drinks portfolio sold through its own retail and hotel network.

These companies are not interchangeable peers. Compare actual business mix, scale, geography, growth, profitability, and asset ownership before deciding whether a company belongs in a segment’s peer set. If the differences are too large to adjust credibly, use that company only as context rather than as a direct multiple input.

Separate pub operations from freehold property

A pub operator’s earnings and a landlord’s property income represent different economics. A freehold owner may collect rent while the operator runs the venue and bears day-to-day operating costs. Grant Thornton’s 2021 Redcape expert-report peer descriptions characterized ALE Property Group as a freehold pub-property owner with properties leased to ALH; it illustrates the owner/operator distinction, not a current listing status or current comparable valuation (Grant Thornton Redcape expert report).

Rank #2
Sale
The Psychology of Money: Timeless lessons on wealth, greed, and happiness
  • Ideal for Gifting
  • Ideal for a bookworm
  • Compact for travelling

For a business that owns pub freeholds, assess property value or landlord economics separately from venue operating earnings where the available information allows. Do not apply a pub-operator multiple to property earnings, or treat the same property value as both an operating asset and a separate asset in the equity bridge.

Normalize earnings and enterprise value

A multiple is meaningful only when its numerator and denominator use consistent definitions. For each peer and target segment, state the reporting period, currency, treatment of significant or unusual items, and whether the earnings measure is reported or adjusted EBITDA or EBIT. Endeavour’s FY26 report discloses significant items and presents results before those items separately, so the chosen earnings basis should be explicit and applied consistently (Endeavour Group FY26 Annual Report).

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Lease accounting is especially important when comparing a leasehold pub operator with a freehold operator or property owner. State whether lease liabilities are included in enterprise value, then use a denominator treated on the same basis. Otherwise, the apparent multiple may reflect different lease structures and accounting conventions rather than a genuine difference in valuation. Also examine maintenance and growth capital expenditure: EBITDA does not deduct either, so similar EBITDA can mask different cash demands.

Build the sum-of-the-parts valuation and equity bridge

  1. Define the valuation date and periods. Use one market date for all share prices and debt inputs. Align financial years and earnings periods as closely as possible, and disclose any remaining mismatch.
  2. Estimate each segment separately. Select peer multiples only after reviewing business mix, growth, margins, scale, lease or freehold ownership, geography, and earnings definitions. Apply the chosen multiple to the matching segment earnings measure.
  3. Adjust for the target segment. Explain why the selected comparables fit and how material differences affect the conclusion. Do not assume a diversified company’s consolidated multiple directly represents its liquor operations.
  4. Reconcile to equity value. Combine segment enterprise values, account for central costs and non-operating assets, and deduct net debt and lease liabilities as appropriate to the enterprise-value definition. Include any separately valued property interest only once.
  5. Present a sensitivity range only when inputs are verified. A range should reflect defensible peer multiples and consistent earnings definitions, not unsupported precision.

The bridge must follow the definitions used in the segment valuations. If leases are treated as debt-like claims in the enterprise-to-equity reconciliation, ensure that the enterprise value and earnings comparisons were constructed on a compatible basis.

Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

What the available figures can—and cannot—support

Endeavour’s FY26 operating disclosures help frame its business mix and recent comparable sales performance. The historical peer materials help explain why different segments need different comparables. Neither establishes a current, harmonized set of public-company multiples as at 4 October 2026. Without a same-date market snapshot and consistently normalized peer filings, quoting a peer median or a numerical valuation range would imply more certainty than the evidence supports.

For a numerical analysis, collect peer market values and filings for the same valuation date, then normalize financial periods, currencies, lease liabilities, adjusted EBITDA or EBIT, and segment composition. Report the resulting assumptions so a reader can see whether the valuation is driven by operating performance, peer selection, lease treatment, or property ownership.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Quick Recap

SaleBestseller No. 1
SaleBestseller No. 2
The Psychology of Money: Timeless lessons on wealth, greed, and happiness
The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Ideal for Gifting; Ideal for a bookworm; Compact for travelling
$10.99
SaleBestseller No. 5
I Will Teach You to Be Rich: No Guilt. No Excuses. Just a 6-Week Program That Works (Second Edition)
I Will Teach You to Be Rich: No Guilt. No Excuses. Just a 6-Week Program That Works (Second Edition)
It can be a gift option; Comes with secure packaging; Helpful in various ways
$9.15
Best Value
Sale
I Will Teach You to Be Rich: No Guilt. No Excuses. Just a 6-Week Program That Works (Second Edition)
  • It can be a gift option
  • Comes with secure packaging
  • Helpful in various ways

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

Free tools Windows power users keep installed

One-click scans. No signup required.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

More from the Money Desk

Recommended PC Tool
Recommended PC Tool
PC Slower Than It Used to Be?Free scan - under a minute
Outdated Drivers Are Slowing You DownFree scan - exact matches

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.