Constellation Brands, Inc. (STZ) Stock Valuation — PE Analysis
Beverages - Wineries & Distilleries · NYSE
Current Price
$148.51
PE Ratio (TTM)
15.3x
Intrinsic Value
$166.06
+10.6% margin of safety
COMPETITIVE MOAT
↑Strong Brand Portfolio
Constellation Brands owns a portfolio of well-established and popular brands across wine, spirits, and beer. These brands benefit from consumer loyalty and recognition, creating a barrier to entry for new competitors.
↑Distribution Network
The company possesses an extensive and efficient distribution network across key markets. This allows for broad product availability and strong relationships with retailers, making it difficult for rivals to match their reach.
↑Scale and Efficiency
Constellation's large scale of operations provides cost advantages in production, procurement, and marketing. This operational efficiency helps maintain competitive pricing and profitability.
INVESTMENT RISKS
↓Shifting Consumer Habits
Evolving consumer preferences towards healthier options or different beverage categories pose a risk. Constellation must adapt its product offerings to remain relevant and capture changing market demands.
↓Inflationary Pressures
Rising costs for raw materials, labor, and transportation can impact profit margins. The company's ability to pass these costs onto consumers without significantly affecting demand is a key challenge.
↓Market Saturation
The beverage industry, particularly in certain segments, can become saturated with numerous brands and products. Intense competition can lead to price wars and slower growth.
Base case
STZ base case PE valuation
A base case PE valuation for STZ estimates a fair value of about $166.06 per share, against a current price of $148.51. The model assumes 6.2% annual earnings growth, a 15x target PE multiple, and a 10% discount rate.
Intrinsic Value
$166.06
Margin of safety
+10.6%
Expected annual return
+2.3%
Base case assumptions: 6.2% annual earnings growth, 15x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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., operating through its subsidiaries, is a global producer, importer, and distributor of a diverse range of beer, wine, and spirits. The company's extensive market presence spans the United States, Canada, Mexico, New Zealand, and Italy. Its prominent beer brands include Corona Extra, Corona Premier, Corona Familiar, Corona Light, Corona Refresca, Corona Hard Seltzer, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria. Within its wine portfolio, consumers can find labels such as 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. The spirits division encompasses brands like Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson's Green Brier, and SVEDKA. The company's products are supplied to various outlets, including wholesale distributors, retailers, on-premise establishments, and state alcohol beverage control agencies. Founded in 1945, Constellation Brands, Inc. is headquartered in Victor, New York.
Financial Metrics — STZ PE Stock Valuation Data
PE Ratio (TTM)
15.3x
PEG Ratio
n/m
Earnings Yield
6.55%
ROE (TTM)
22.1%
Revenue/Share (TTM)
$52.68
Dividend Yield
2.75%
Debt/Equity
1.39x
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 - Wineries & Distilleries peers and the company's own historical range.
Is STZ overvalued based on PE ratio?
STZ's PE of 15.3x combined with a PEG ratio of -0.01 provides a growth-adjusted perspective. STZ has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Beverages - Wineries & Distilleries, 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 (15.3x) against the Beverages - Wineries & Distilleries median to assess relative pricing, (2) check the PEG ratio (-0.01) 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 -0.01, calculated by dividing the PE ratio (15.3x) by the expected earnings growth rate. Because STZ has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. 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 - Wineries & Distilleries peers. DCF provides an absolute value based on projected free cash flows. For STZ, with a strong ROE of 22.1%, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.