Constellation Brands, Inc. (STZ) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-144.8%

-$62.54

vs $139.71 price

Levered DCF

$213.76

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.8

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	16.41×	-390×	26.38×	-604.59×	-1,026.76×	20.9×	-2,766.93×	9.38×
P/B	3.43×	4.63×	4.68×	5.12×	3.5×	3.07×	2.69×	2.57×
P/S	3.03×	3.12×	4.57×	4.56×	4.65×	4.85×	3.91×	3.97×
EV / EBITDA	12.31×	56.18×	18.8×	47.97×	51.54×	16.21×	-238.4×	9.35×
Gross margin	51.6%	51.0%	49.3%	50.9%	52.1%	51.9%	51.8%	50.5%
Operating margin	31.3%	35.5%	31.5%	31.6%	32.9%	33.2%	33.2%	32.7%
Net margin	18.5%	-0.8%	17.3%	-0.8%	-0.5%	23.2%	-0.1%	42.3%
Current ratio	1.08×	0.92×	1.19×	1.18×	1.23×	2.4×	1.51×	1.16×
Debt / equity	1.39×	1.76×	1.29×	1.54×	0.93×	0.81×	1.05×	1.08×
Interest coverage	8.12×	8.8×	7.22×	7.51×	8.25×	7.47×	6.46×	6.41×
Dividend yield	2.6%	2.3%	1.4%	1.4%	1.4%	1.4%	1.7%	1.7%
Payout ratio	42.4%	-899.0%	37.8%	-827.7%	-1418.3%	28.8%	-4823.7%	16.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	20.9%	-1.2%	17.7%	-0.8%	-0.3%	14.7%	-0.1%	27.4%
Return on invested capital	10.5%	6.8%	10.4%	-1.3%	0.0%	8.8%	-0.2%	7.9%
Return on assets	7.7%	-0.4%	6.7%	-0.3%	-0.2%	7.4%	-0.0%	11.8%
Free cash flow yield	6.5%	6.1%	3.3%	4.0%	4.1%	4.7%	5.6%	4.2%
Earnings yield	6.1%	-0.3%	3.8%	-0.2%	-0.1%	4.8%	-0.0%	10.7%
Enterprise value	$38.8B	$43.9B	$58B	$55.9B	$51.8B	$52.3B	$45.3B	$45.8B
Net debt / EBITDA	3.52×	15.42×	4.02×	11.01×	10.7×	3.26×	-66.65×	2.76×
Cash conversion cycle (days)	77	72	110	117	105	119	127	195