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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Molson Coors Beverage Co's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 138.93. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Molson Coors Beverage Co's Degree of Operating Leverage or its related term are showing as below:
TAP's Degree of Operating Leverage is ranked worse than 97.56% of 205
companies
in the Beverages - Alcoholic industry
Industry Median: 1.53
vs TAP: 138.93
Molson Coors Beverage Co (NYSE:TAP) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Molson Coors Beverage Co Degree of Operating Leverage Related Terms
Molson Coors Beverage Co Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Molson Coors Beverage Co's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Molson Coors Beverage Co Degree of Operating Leverage Chart
TAP vs SAM, STZ: Degree of Operating Leverage Comparison
For the Beverages - Brewers subindustry, Molson Coors Beverage Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Molson Coors Beverage Co Degree of Operating Leverage vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Molson Coors Beverage Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Molson Coors Beverage Co's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 138.93 mean?
Molson Coors Beverage Co (TAP) has a Degree of Operating Leverage of 138.93 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Molson Coors Beverage Co and its competitors. According to the industry distribution chart, Molson Coors Beverage Co ranks #200 out of 205 companies in the Beverages - Alcoholic industry, placing it in the top 97.6%.
Is Molson Coors Beverage Co's Degree of Operating Leverage too high?
Molson Coors Beverage Co's current Degree of Operating Leverage is 138.93. The Beverages - Alcoholic industry median Degree of Operating Leverage is 1.53. Molson Coors Beverage Co's value of 138.93 is 8980.4% above this industry median. Based on the distribution chart, Molson Coors Beverage Co ranks #200 out of 205 companies in the Beverages - Alcoholic industry, which is in the bottom quartile relative to peers. Overall, Molson Coors Beverage Co has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Molson Coors Beverage Co's Degree of Operating Leverage compare to SAM and STZ?
According to the Beverages - Alcoholic industry distribution chart, Molson Coors Beverage Co ranks #200 out of 205 companies for Degree of Operating Leverage. This places Molson Coors Beverage Co in the lower half of its industry. The industry median Degree of Operating Leverage is 1.53. Molson Coors Beverage Co's value of 138.93 is 8980.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Beverages - Alcoholic company?
The median Degree of Operating Leverage among Beverages - Alcoholic companies is 1.53, based on 205 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Molson Coors Beverage Co's current Degree of Operating Leverage of 138.93 is 8980.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Molson Coors Beverage Co and its competitors. For the Beverages - Alcoholic industry, the median Degree of Operating Leverage is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Molson Coors Beverage Co's current Degree of Operating Leverage is 138.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Molson Coors Beverage Co stock overvalued right now?
Based on GuruFocus' analysis, Molson Coors Beverage Co (TAP) is currently considered Possible Value Trap. The stock's GF Value™ is $57.00, compared to a current price of $39.08 — trading 31.4% below its estimated fair value. The current Degree of Operating Leverage is 138.93 and 8980.4% above the Beverages - Alcoholic industry median of 1.53. Molson Coors Beverage Co's overall GF Score™ is 57/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Molson Coors Beverage Co (TAP), the current Degree of Operating Leverage is 138.93 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Molson Coors Beverage Co (TAP) Overvalued in 2026?
Based on GuruFocus' analysis, Molson Coors Beverage Co stock appears to be undervalued.
The current stock price of $39.08 is trading 31.4% below its estimated GF Value™ of $57.00.
GuruFocus considers Molson Coors Beverage Co to be Possible Value Trap.
Key valuation signals for TAP:
Degree of Operating Leverage: 138.93
GF Value™: $57.00 vs. price of $39.08 (31.4% below fair value)
Industry Position: 8980.4% above the Beverages - Alcoholic median (#200 of 205)
No single metric tells the full story. See the TAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Molson Coors owns well-known beer brands including Miller, Coors, Blue Moon, and Carling, and ranks as the second-largest beer maker in both value and volume in the US, Canada, and the United Kingdom. Through licensing agreements, it also brews and distributes beer and nonbeer beverage categories under partner brands from Heineken, Anheuser-Busch InBev, Asahi, Fever-Tree, and Coca-Cola. North America remains its largest market, accounting for nearly 80% of total revenue.
57GF Score
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