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 10.87 is considered Undervalued compared with the five-year average of 19.03. The fair price of Constellation Brands Inc (STZ) is between 169.89 to 232.17 according to relative valuation methord. Compared to the current price of 130.96 USD , Constellation Brands Inc is Undervalued By 22.91%.
Relative Value
Fair Zone
169.89-232.17
Current Price：130.96
22.91%
Undervalued
11.02
PE
1Y
3Y
5Y
Trailing
Forward
9.63
EV/EBITDA
Constellation Brands Inc. (STZ) has a current EV/EBITDA of 9.63. The 5-year average EV/EBITDA is 14.80. The thresholds are as follows: Strongly Undervalued below 11.12, Undervalued between 11.12 and 12.96, Fairly Valued between 16.64 and 12.96, Overvalued between 16.64 and 18.47, and Strongly Overvalued above 18.47. The current Forward EV/EBITDA of 9.63 falls within the Strongly Undervalued range.
11.24
EV/EBIT
Constellation Brands Inc. (STZ) has a current EV/EBIT of 11.24. The 5-year average EV/EBIT is 16.71. The thresholds are as follows: Strongly Undervalued below 12.70, Undervalued between 12.70 and 14.71, Fairly Valued between 18.72 and 14.71, Overvalued between 18.72 and 20.72, and Strongly Overvalued above 20.72. The current Forward EV/EBIT of 11.24 falls within the Strongly Undervalued range.
130.96
PS
Constellation Brands Inc. (STZ) has a current PS of 130.96. The 5-year average PS is 5.79. The thresholds are as follows: Strongly Undervalued below -20.89, Undervalued between -20.89 and -7.55, Fairly Valued between 19.13 and -7.55, Overvalued between 19.13 and 32.47, and Strongly Overvalued above 32.47. The current Forward PS of 130.96 falls within the Strongly Overvalued range.
7.76
P/OCF
Constellation Brands Inc. (STZ) has a current P/OCF of 7.76. The 5-year average P/OCF is 13.51. The thresholds are as follows: Strongly Undervalued below 6.36, Undervalued between 6.36 and 9.94, Fairly Valued between 17.09 and 9.94, Overvalued between 17.09 and 20.66, and Strongly Overvalued above 20.66. The current Forward P/OCF of 7.76 falls within the Undervalued range.
12.84
P/FCF
Constellation Brands Inc. (STZ) has a current P/FCF of 12.84. The 5-year average P/FCF is 27.82. The thresholds are as follows: Strongly Undervalued below 14.55, Undervalued between 14.55 and 21.18, Fairly Valued between 34.45 and 21.18, Overvalued between 34.45 and 41.09, and Strongly Overvalued above 41.09. The current Forward P/FCF of 12.84 falls within the Strongly Undervalued range.
Constellation Brands Inc (STZ) has a current Price-to-Book (P/B) ratio of 3.01. Compared to its 3-year average P/B ratio of 4.73 , the current P/B ratio is approximately -36.22% higher. Relative to its 5-year average P/B ratio of 4.33, the current P/B ratio is about -30.38% higher. Constellation Brands Inc (STZ) has a Forward Free Cash Flow (FCF) yield of approximately 8.22%. Compared to its 3-year average FCF yield of 4.33%, the current FCF yield is approximately 89.74% lower. Relative to its 5-year average FCF yield of 4.32% , the current FCF yield is about 90.46% lower.
3.06
P/B
Median3y
4.73
Median5y
4.33
8.11
FCF Yield
Median3y
4.33
Median5y
4.32
Competitors Valuation Multiple
The average P/S ratio for STZ's competitors is 84.43, providing a benchmark for relative valuation. Constellation Brands Inc Corp (STZ) exhibits a P/S ratio of 130.96, which is 55.10% above the industry average. Given its robust revenue growth of -15.00%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of STZ decreased by 45.65% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.79 to 19.14.
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.
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FAQ
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