STZ PE Ratio & Valuation,Is STZ Overvalued

STZ Relative Valuation

STZ's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, STZ is overvalued; if below, it's undervalued.

Historical Valuation

Constellation Brands Inc (STZ) is now in the Undervalued zone, suggesting that its current forward PE ratio of 12.41 is considered Undervalued compared with the five-year average of 18.86. The fair price of Constellation Brands Inc (STZ) is between 171.85 to 235.79 according to relative valuation methord. Compared to the current price of 147.42 USD , Constellation Brands Inc is Undervalued By 14.22%.

Relative Value

Fair Zone

171.85-235.79

Current Price：147.42

14.22%

Undervalued

12.41

10.47

EV/EBITDA

Constellation Brands Inc. (STZ) has a current EV/EBITDA of 10.47. The 5-year average EV/EBITDA is 14.64. The thresholds are as follows: Strongly Undervalued below 10.69, Undervalued between 10.69 and 12.67, Fairly Valued between 16.62 and 12.67, Overvalued between 16.62 and 18.59, and Strongly Overvalued above 18.59. The current Forward EV/EBITDA of 10.47 falls within the Strongly Undervalued range.

12.21

EV/EBIT

Constellation Brands Inc. (STZ) has a current EV/EBIT of 12.21. The 5-year average EV/EBIT is 16.55. The thresholds are as follows: Strongly Undervalued below 12.26, Undervalued between 12.26 and 14.40, Fairly Valued between 18.70 and 14.40, Overvalued between 18.70 and 20.85, and Strongly Overvalued above 20.85. The current Forward EV/EBIT of 12.21 falls within the Strongly Undervalued range.

2.86

Constellation Brands Inc. (STZ) has a current PS of 2.86. The 5-year average PS is 4.29. The thresholds are as follows: Strongly Undervalued below 2.94, Undervalued between 2.94 and 3.62, Fairly Valued between 4.97 and 3.62, Overvalued between 4.97 and 5.65, and Strongly Overvalued above 5.65. The current Forward PS of 2.86 falls within the Strongly Undervalued range.

8.73

P/OCF

Constellation Brands Inc. (STZ) has a current P/OCF of 8.73. The 5-year average P/OCF is 13.33. The thresholds are as follows: Strongly Undervalued below 6.05, Undervalued between 6.05 and 9.69, Fairly Valued between 16.98 and 9.69, Overvalued between 16.98 and 20.62, and Strongly Overvalued above 20.62. The current Forward P/OCF of 8.73 falls within the Undervalued range.

14.45

P/FCF

Constellation Brands Inc. (STZ) has a current P/FCF of 14.45. The 5-year average P/FCF is 27.41. The thresholds are as follows: Strongly Undervalued below 13.43, Undervalued between 13.43 and 20.42, Fairly Valued between 34.40 and 20.42, Overvalued between 34.40 and 41.39, and Strongly Overvalued above 41.39. The current Forward P/FCF of 14.45 falls within the Undervalued range.

Constellation Brands Inc (STZ) has a current Price-to-Book (P/B) ratio of 3.44. Compared to its 3-year average P/B ratio of 4.67 , the current P/B ratio is approximately -26.50% higher. Relative to its 5-year average P/B ratio of 4.33, the current P/B ratio is about -20.65% higher. Constellation Brands Inc (STZ) has a Forward Free Cash Flow (FCF) yield of approximately 7.20%. Compared to its 3-year average FCF yield of 4.44%, the current FCF yield is approximately 62.22% lower. Relative to its 5-year average FCF yield of 4.35% , the current FCF yield is about 65.48% lower.

3.44

P/B

Median3y

4.67

Median5y

4.33

7.20

FCF Yield

Median3y

4.44

Median5y

4.35

Competitors Valuation Multiple

The average P/S ratio for STZ's competitors is 1.82, providing a benchmark for relative valuation. Constellation Brands Inc Corp (STZ) exhibits a P/S ratio of 2.86, which is 56.69% above the industry average. Given its robust revenue growth of -15.00%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of STZ decreased by 33.29% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.35 to 21.52.

The secondary factor is the Revenue Growth, contributed -15.00%to the performance.

Overall, the performance of STZ in the past 1 year is driven by P/E Change. Which is more unsustainable.

-15.00%

2.92B → 2.48B

Revenue Growth

-148.36%

-40.51 → 19.59

Margin Expansion

130.07%

9.35 → 21.52

P/E Change

-33.29%

221.00 → 147.42

Mkt Cap Growth

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Frequently Asked Questions

Is Constellation Brands Inc (STZ) currently overvalued or undervalued?

What is Constellation Brands Inc (STZ) fair value?

STZ's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Constellation Brands Inc (STZ) is between 171.85 to 235.79 according to relative valuation methord.

How does STZ's valuation metrics compare to the industry average?

What is the current P/B ratio for Constellation Brands Inc (STZ) as of Dec 15 2025?

As of Dec 15 2025, Constellation Brands Inc (STZ) has a P/B ratio of 3.44. This indicates that the market values STZ at 3.44 times its book value.

What is the current FCF Yield for Constellation Brands Inc (STZ) as of Dec 15 2025?

As of Dec 15 2025, Constellation Brands Inc (STZ) has a FCF Yield of 7.20%. This means that for every dollar of Constellation Brands Inc’s market capitalization, the company generates 7.20 cents in free cash flow.

What is the current Forward P/E ratio for Constellation Brands Inc (STZ) as of Dec 15 2025?

As of Dec 15 2025, Constellation Brands Inc (STZ) has a Forward P/E ratio of 12.41. This means the market is willing to pay $12.41 for every dollar of Constellation Brands Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Constellation Brands Inc (STZ) as of Dec 15 2025?

As of Dec 15 2025, Constellation Brands Inc (STZ) has a Forward P/S ratio of 2.86. This means the market is valuing STZ at $2.86 for every dollar of expected revenue over the next 12 months.

STZ Valuation