Beverages - Wineries & Distilleries · NYSE
Current Price
$150.40
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Constellation Brands, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. It provides beer primarily under the Corona Extra, Corona Premier, Corona Familiar, Corona Light, Corona Refresca, Corona Hard Seltzer, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands. The company offers wine under the 7 Moons, Cook's California Champagne, Cooper & Thief, Crafters Union, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, The Dreaming Tree, Charles Smith, The Prisoner Wine Company, Robert Mondavi, My Favorite Neighbor, and Schrader; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson's Green Brier, and SVEDKA brands. It provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.
ROIC (TTM)
10.5%
ROE (TTM)
22.1%
FCF Yield
6.93%
Based on trailing twelve-month data, STZ shows a free cash flow per share of N/A and a ROIC of 10.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 6.93% are important context metrics when evaluating STZ's stock valuation relative to peers.
The intrinsic value of STZ depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether STZ is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $150.40. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Constellation Brands, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Beverages - Wineries & Distilleries industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting STZ's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Constellation Brands, Inc., this means projecting how much free cash flow the Beverages - Wineries & Distilleries will produce over the next 5-10 years, then discounting those amounts to today's dollars. STZ's ROIC of 10.5% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For STZ, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
