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Constellation Brands Inc - Class A

Exchange: NYSESector: Consumer DefensiveIndustry: Beverages - Wineries & Distilleries

At Constellation Brands, our mission is to build brands that people love because we believe sharing a toast, unwinding after a day, celebrating milestones, and helping people connect, are Worth Reaching For. It’s worth our dedication, hard work, and the bold calculated risks we take to deliver more for our consumers, trade partners, shareholders, and communities in which we live and work. It’s what has made us one of the fastest-growing large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what’s next. Today, we are a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Every day, people reach for our high-end, iconic imported beer brands such as Corona Extra, Corona Light, Corona Premier, Modelo Especial, Modelo Negra, and Pacifico, our fine wine and craft spirits brands, including The Prisoner Wine Company, Robert Mondavi Winery, Schrader Cellars, Double Diamond, To Kalon Vineyard Company, Lingua Franca, My Favorite Neighbor, LLC (including Booker Wines), Mount Veeder Winery, Casa Noble Tequila, and High West Whiskey, and our premium wine brands such as Meiomi and Kim Crawford. But we won’t stop here. Our visionary leadership team and passionate employees from barrel room to boardroom are reaching for the next level, to explore the boundaries of the beverage alcohol industry and beyond. Join us in discovering what’s Worth Reaching For.

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Price sits at 42% of its 52-week range.

Current Price

$152.82

-2.40%

GoodMoat Value

$161.73

5.8% undervalued
Profile
Valuation (TTM)
Market Cap$26.50B
P/E15.71
EV$37.20B
P/B3.28
Shares Out173.41M
P/Sales2.90
Revenue$9.14B
EV/EBITDA11.53

Constellation Brands Inc - Class A (STZ) Valuation

GoodMoat Analysis

Based on data as of March 26, 2026

Constellation Brands is trading near its estimated fair value, offering a minimal margin of safety. While the stock appears reasonably priced relative to its sector, its elevated P/E and negative revenue growth present a valuation challenge for a classic value investor.

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Based on the GoodMoat framework, the current price of $151.56 is very close to the GoodMoat Target of $157.06, implying a margin of safety of only 3.5%. This falls into the 'Unfavourable' band (less than 10%), indicating the stock is not deeply undervalued. The forward P/E of 23.9x is above the sector average for consumer defensive stocks, which typically trade in the high teens to low 20s. This multiple appears full, especially when considered alongside a significant YoY revenue decline of -9.8%. For a value investor, this combination of a thin margin of safety, a premium P/E, and negative growth is not compelling. The stock's quality, evidenced by a strong ROE of 16.1% and a healthy FCF yield of 7.4%, is offset by a high debt-to-equity ratio of 1.67, which adds risk. The valuation is not cheap relative to this mixed quality profile, placing it in a 'with caution' category that requires a very high conviction in a growth turnaround to justify investment at this level. Analysis based on data as of 2024-05-15.

STZ Fair Value Estimate

$161.735.8% undervalued

Blended fair value estimate based on DCF, Graham Number, and earnings-based models.

STZ Valuation Metrics

FCF$1.85B
FCF Growth Rate0.18%
EPS Growth (CAGR)-3.33%
WACC10.00%

STZ Valuation & Fair Value Analysis

Constellation Brands Inc - Class A (STZ) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.

The GoodMoat Fair Value target for Constellation Brands Inc - Class A is $161.73. The current stock price is $152.82, suggesting the stock is 5.8% undervalued.

The price-to-earnings (P/E) ratio is 15.71. Price-to-book ratio is 3.28. Price-to-sales ratio is 2.90. Enterprise value to EBITDA is 11.53. PEG ratio is -0.10.

GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Constellation Brands Inc - Class A's intrinsic value.