Constellation Brands Valuation

Q: What is the Fair Price of STZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

STZ (CA$19.32) is trading below our estimate of [[fair value]] (CA$43.86)

Is STZ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of STZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STZ (CA$19.32) is trading below our estimate of fair value (CA$43.86)

Significantly Below Fair Value: STZ is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STZ?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for STZ. This is calculated by dividing STZ's market cap by their current preferred multiple.
What is STZ's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	n/a

STZ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.4x
Enterprise Value/EBITDA	14.1x
PEG Ratio	2.3x

Price to Earnings Ratio vs Peers

How does STZ's PE Ratio compare to its peers?

The above table shows the PE ratio for STZ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	32.3x
CSW.A Corby Spirit and Wine	14.9x	n/a	CA$356.5m
SAP Saputo	48.1x	19.7%	CA$11.4b
PRMW Primo Water	46.8x	84.7%	CA$5.4b
RI Pernod Ricard	19.2x	9.9%	€28.3b
STZ Constellation Brands	73.4x	31.8%	CA$42.3b

Price-To-Earnings vs Peers: STZ is expensive based on its Price-To-Earnings Ratio (73.4x) compared to the peer average (32.3x).

Price to Earnings Ratio vs Industry

How does STZ's PE Ratio compare vs other companies in the North American Beverage Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	10.3%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	10.3%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: STZ is expensive based on its Price-To-Earnings Ratio (73.4x) compared to the Global Beverage industry average (19.4x).

Price to Earnings Ratio vs Fair Ratio

What is STZ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STZ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	73.4x
Fair PE Ratio	39.9x

Price-To-Earnings vs Fair Ratio: STZ is expensive based on its Price-To-Earnings Ratio (73.4x) compared to the estimated Fair Price-To-Earnings Ratio (39.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.