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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Constellation Brands Inc. To summarize, we found that Constellation Brands Inc ranked in the 66th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 143.83%. As for the metrics that stood out in our discounted cash flow analysis of Constellation Brands Inc, consider:
In the past 5.73 years, Constellation Brands Inc has a compound free cash flow growth rate of 0.41%; that's better than 79.65% of cash flow producing equities in the Consumer Defensive sector, where it is classified.
Constellation Brands Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 21.08% of tickers in our DCF set.
Constellation Brands Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive 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 PFGC, MO, FDP, STKL, and JBSS.
Cowen keeps an Outperform rating on Constellation Brands (STZ) and lifts EPS estimates after factoring in the E&J transaction and current demand trends. "While depletion growth remains muted as STZ continues to address inventory tightness following the temporarily closure of its Mexican breweries, take-away trends in tracked channels are showing...
Shares of Constellation Brands Inc. (NYSE: STZ) stayed in green territory on Friday, a day after the company reported second quarter 2021 earnings results. Despite falling 4% year-over-year, the company’s second quarter sales were better than market expectations. Constellation also reported earnings of $2.62 per share for the quarter versus a loss of $2.77 per […]
Constellation Brands (NYSE: STZ) reported second-quarter 2021 financial results before the opening bell on Thursday. The company reported a 4% dip in Q2 sales to $2.26 billion, beating the Wall Street consensus. Earnings of $2.62 per share were also stronger than what analysts had anticipated. STZ shares fell modestly immediately following the announcement. The stock […]