Discounted Cash Flow (DCF) Analysis Levered
Constellation Brands, Inc. (STZ)
$251.61
+1.02 (+0.41%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 8,116 | 8,343.50 | 8,614.90 | 8,820.70 | 9,452.60 | 9,821.46 | 10,204.71 | 10,602.91 | 11,016.65 | 11,446.54 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,246.30 | 2,551.10 | 2,806.50 | 2,705.40 | 2,756.90 | 2,959.54 | 3,075.03 | 3,195.02 | 3,319.70 | 3,449.24 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -886.30 | -726.50 | -864.60 | -1,026.80 | -1,035.40 | -1,026.50 | -1,066.56 | -1,108.18 | -1,151.42 | -1,196.35 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,360 | 1,824.60 | 1,941.90 | 1,678.60 | 1,721.50 | 1,933.04 | 2,008.47 | 2,086.84 | 2,168.27 | 2,252.88 |
Weighted Average Cost Of Capital
| Share price | $ 251.61 |
|---|---|
| Beta | 1.046 |
| Diluted Shares Outstanding | 192.54 |
| Cost of Debt | |
| Tax Rate | 110.04 |
| After-tax Cost of Debt | -0.32% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.534 |
| Total Debt | 12,461.30 |
| Total Equity | 48,445.74 |
| Total Capital | 60,907.04 |
| Debt Weighting | 20.46 |
| Equity Weighting | 79.54 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 8,116 | 8,343.50 | 8,614.90 | 8,820.70 | 9,452.60 | 9,821.46 | 10,204.71 | 10,602.91 | 11,016.65 | 11,446.54 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,246.30 | 2,551.10 | 2,806.50 | 2,705.40 | 2,756.90 | 2,959.54 | 3,075.03 | 3,195.02 | 3,319.70 | 3,449.24 |
| Capital Expenditure | -886.30 | -726.50 | -864.60 | -1,026.80 | -1,035.40 | -1,026.50 | -1,066.56 | -1,108.18 | -1,151.42 | -1,196.35 |
| Free Cash Flow | 1,360 | 1,824.60 | 1,941.90 | 1,678.60 | 1,721.50 | 1,933.04 | 2,008.47 | 2,086.84 | 2,168.27 | 2,252.88 |
| WACC | ||||||||||
| PV LFCF | 1,797.84 | 1,737.35 | 1,678.89 | 1,622.40 | 1,567.81 | |||||
| SUM PV LFCF | 8,404.27 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.52 |
| Free cash flow (t + 1) | 2,297.94 |
| Terminal Value | 41,629.35 |
| Present Value of Terminal Value | 28,970.32 |
Intrinsic Value
| Enterprise Value | 37,374.60 |
|---|---|
| Net Debt | 12,327.80 |
| Equity Value | 25,046.80 |
| Shares Outstanding | 192.54 |
| Equity Value Per Share | 130.08 |