Value Sense
STZ
Constellation Brands, Inc. (STZ)
Last Price$175.3(0.1%)
Market Cap$32.2B
WACC
8.3%
Cost of Equity
8.3%
Cost of Debt
11.0%
Debt to Equity
2.8%
Beta
1.0
Stock quality
6/10
Good
STZ
is 36.7% overvalued
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STZ WACC

Recent WACC calculation

as of Mar 03, 2025
Cost of Equity
% share of Total Capital
8.3%
97.3%
Risk-free rate
4.2%
Beta
0.9
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
11.0%
2.7%
Average Cost of Debt
11.7%
Effective Tax Rate
6.6%
WACC
8.3%

WACC dynamics

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STZ Cost of Equity

Recent Cost of Equity calculation

as of Mar 03, 2025
Risk-free rate
4.2%
Beta
0.9
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
8.3%

Cost of Equity dynamics

STZ vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Constellation Brands, Inc. logo
Constellation Brands, Inc.STZ
8.3%
5.4%
N/A
17.3%
Median Peer Set
6.2%
1.7%
3.3%
(3.1%)
Ambev S.A. logo
Ambev S.A.ABEV
11.8%
3.3%
3.3%
18.2%
LQR House Inc. logo
LQR House Inc.LQR
11.7%
86.4%
9,905.9%
(1,405.3%)
The Duckhorn Portfolio, Inc. logo
The Duckhorn Portfolio, Inc.NAPA
7.5%
0.6%
(25.0%)
13.8%
Brown-Forman Corporation logo
Brown-Forman CorporationBF-B
6.5%
(1.2%)
31.1%
24.5%
ATA Creativity Global logo
ATA Creativity GlobalAACG
6.2%
1.7%
(33.9%)
(15.2%)
MGP Ingredients, Inc. logo
MGP Ingredients, Inc.MGPI
5.3%
6.9%
(2.4%)
12.8%
Willamette Valley Vineyards, Inc. logo
Willamette Valley Vineyards, Inc.WVVI
4.3%
15.3%
400.0%
(3.1%)
Eastside Distilling, Inc. logo
Eastside Distilling, Inc.EAST
4.0%
(24.4%)
(67.1%)
(71.8%)
Vintage Wine Estates, Inc. logo
Vintage Wine Estates, Inc.VWE
1.7%
(3.6%)
28,471.4%
(66.7%)

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FAQ

What is Constellation Brands, Inc.'s discount rate as of Mar 03, 2025?

As of Mar 03, 2025, Constellation Brands, Inc.'s discount rate is 8.34%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Constellation Brands, Inc.'s capital structure and risk profile.

What is Constellation Brands, Inc.'s weighted average cost of capital (WACC)?

Constellation Brands, Inc.'s WACC as of Mar 03, 2025, is 8.34%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Constellation Brands, Inc.'s cost of equity?

Constellation Brands, Inc.'s cost of equity is 8.3%, as of Mar 03, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.