Constellation Brands, Inc. (STZ) Stock Valuation — PE Analysis
Beverages - Alcoholic · NYSE
Current Price
$118.39
PE Ratio (TTM)
10.6x
Intrinsic Value
$125.48
+5.7% margin of safety
COMPETITIVE MOAT
↑Dominant Beer Portfolio
Constellation Brands holds leading market share in the U.S. premium beer segment with brands like Modelo and Corona. This strong brand recognition and consumer loyalty create significant barriers to entry for competitors.
↑Extensive Distribution Network
The company possesses a vast and established distribution network across the U.S. This allows for efficient product placement and accessibility, making it difficult for smaller players to compete on scale.
↑Premiumization Strategy Success
Constellation's focus on premium and high-end brands resonates with evolving consumer preferences. This strategic shift drives higher margins and strengthens its competitive position in a growing market segment.
INVESTMENT RISKS
↓Regulatory Environment Changes
The alcoholic beverage industry is heavily regulated. Changes in excise taxes, marketing restrictions, or distribution laws could negatively impact profitability and market access.
↓Intense Competition
The beer and spirits market is highly competitive, with both large global players and nimble craft producers vying for market share. Aggressive pricing and marketing by rivals pose a constant threat.
↓Supply Chain Disruptions
Global supply chain issues, including ingredient sourcing, production, and transportation, can affect Constellation's ability to meet demand and manage costs. This can lead to stockouts or increased operational expenses.
Base case
STZ base case PE valuation
At a current price of $118.39, the base case PE valuation puts STZ fair value near $125.48 per share. That figure assumes 1.8% yearly earnings growth, a target PE multiple of 10.49x, and a 10% discount rate.
Intrinsic Value
$125.48
Margin of safety
+5.7%
Expected annual return
+1.2%
Base case assumptions: 1.8% annual earnings growth, 10.49x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the STZ PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Constellation Brands, Inc. respond.
Open PE Calculator for STZCompany Overview
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. The company offers beer under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. It also offers wine under the Cook’s California Champagne, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, My Favorite Neighbor, Robert Mondavi Winery, Schrader, and The Prisoner Wine Company brands; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson’s Green Brier, and SVEDKA brands. The company 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 based in Rochester, New York.
Financial Metrics — STZ PE Stock Valuation Data
PE Ratio (TTM)
10.6x
PEG Ratio
0.17
Earnings Yield
9.53%
ROE (TTM)
23.4%
Revenue/Share (TTM)
$54.02
Dividend Yield
3.46%
Debt/Equity
0.01x
Frequently Asked Questions
What is the PE ratio of STZ?
The trailing twelve-month PE ratio of STZ reflects how much investors pay per dollar of Constellation Brands, Inc.'s earnings. This metric is most useful when compared to Beverages - Alcoholic peers and the company's own historical range.
Is STZ overvalued based on PE ratio?
STZ's PE of 10.6x combined with a PEG ratio of 0.17 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Beverages - Alcoholic, a DCF analysis may be more appropriate.
How do I value STZ stock using PE ratio?
To value Constellation Brands, Inc. using PE: (1) Compare the current PE (10.6x) against the Beverages - Alcoholic median to assess relative pricing, (2) check the PEG ratio (0.17) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of STZ?
STZ's PEG ratio is 0.17, calculated by dividing the PE ratio (10.6x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for STZ stock valuation?
PE ratio gives a quick relative read — how STZ is priced versus Beverages - Alcoholic peers. DCF provides an absolute value based on projected free cash flows. For STZ, with a strong ROE of 23.4%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See STZ DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Defensive valuationsP/E and DCF value STZ with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.