Commonwealth Brewery Limited

The dominant beverage franchise in the Bahamas, 75% owned by Heineken, brewing and distributing beer and spirits and running a retail liquor network. A mature, high-margin, cash-generative business with no bank debt. The question is price, not quality. To a global investor charging the full country risk premium, fair value is about $5.51 against a $10.10 price, roughly 45% below the tape. To a domestic investor charging none, it is about $10.27, almost exactly the market price. The stock is priced for the local buyer who sets it.

1. The price is set by the domestic investor. To a global investor charging the full 5.13% premium, fair value is about $5.51, roughly 45% below the $10.10 price. To a domestic investor charging none, it is about $10.27, within 2% of the market. The local buyer, not the foreigner, is setting this price, and to that buyer it is fairly valued.
2. Quality is not the question. Leading share in beer and spirits, stable high margins, no financial leverage, and a payout near 90% make CBB a dependable local income holding. The debate is entirely about what discount rate a Bahamian dollar of that cash flow deserves.
3. A new tax is a real headwind. From FY2026 the 15% Pillar Two minimum top-up tax costs roughly $2M a year, about 15% of pre-tax profit, a permanent step-down that did not exist before. Combined with import-duty and freight inflation, it caps the earnings the rich multiple is leaning on.