Constellation Brands is a leading international producer and marketer of beer, wine and spirits with operations in the U.S., Canada, Mexico, New Zealand and Italy. The company was founded in 1945 and is based in Victor, New York.
STZ Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for STZ, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Constellation Brands Inc ranked in the 42th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Constellation Brands Inc, consider:
Constellation Brands Inc's effective tax rate, as measured by taxes paid relative to net income, is at 77 -- greater than 96.2% of US stocks with positive free cash flow.
Constellation Brands Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.5. This coverage rate is greater than that of only 22.86% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 11. This value is greater than 82.06% stocks in the Consumer Defensive sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as STZ, try HSY, NWL, LFVN, BUD, and FLO.
The beer industry is made up of companies specializing in the production of beer, although many of them produce other alcoholic and non-alcoholic beverages. As a result, the beer industry is part of the much broader consumer staples sector. This has dramatically changed consumer behavior worldwide, sharply lowering beer demand in many regions.
Brand Partners with PGA TOUR Player Rickie Fowler to Launch Fan Sweepstakes and New TravisMathew Golf Line Corona Premier Deepens Commitment to Golf Ahead of U.S. Open Championship Brand Partners with PGA TOUR Player Rickie Fowler to Launch Fan Sweepstakes and New TravisMathew Golf LineCHICAGO, Sept. 15, 2020 (GLOBE NEWSWIRE) -- Corona Premier is proud to support the 120th U.S. Open Championship, which will be played Sept. 14-20 at Winged Foot Golf Club in Mamaroneck, N.Y. The relationship is a part of the multi-year partnership established in 2019 between Corona Premier and the United States Golf Association (USGA). To kick off the U.S. Open, Corona Premier has partnered with American PGA TOUR player and 5-time winner Rickie Fowler. Fowler, a world-class athlete who embodies the easy...
Constellation Brands, Inc. (STZ) Barclays Global Consumer Staples Broker Conference Call September 09, 2020, 11:20 ET Company Participants Garth Hankinson - EVP & CFO Conference Call Participants Lauren Lieberman - Barclays Bank Presentation Lauren Lieberman Great. So next up in our line of presentations, we have Constellation Brands. While nurturing...
SA Transcripts on Seeking Alpha | September 9, 2020