Discounted Cash Flow (DCF) Analysis Levered
Constellation Brands, Inc. (STZ)
$246.555
+3.52 (+1.45%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 7,585 | 8,116 | 8,343.50 | 8,614.90 | 8,820.70 | 9,161.30 | 9,515.05 | 9,882.46 | 10,264.06 | 10,660.39 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,931.40 | 2,246.30 | 2,551.10 | 2,806.50 | 2,705.40 | 2,692.78 | 2,796.76 | 2,904.75 | 3,016.92 | 3,133.41 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,057.60 | -886.30 | -726.50 | -864.60 | -1,026.80 | -1,012.29 | -1,051.37 | -1,091.97 | -1,134.14 | -1,177.93 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 873.80 | 1,360 | 1,824.60 | 1,941.90 | 1,678.60 | 1,680.50 | 1,745.39 | 1,812.78 | 1,882.78 | 1,955.48 |
Weighted Average Cost Of Capital
| Share price | $ 246.555 |
|---|---|
| Beta | 1.065 |
| Diluted Shares Outstanding | 195.31 |
| Cost of Debt | |
| Tax Rate | 113.02 |
| After-tax Cost of Debt | -0.45% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.809 |
| Total Debt | 10,416.50 |
| Total Equity | 48,154.16 |
| Total Capital | 58,570.66 |
| Debt Weighting | 17.78 |
| Equity Weighting | 82.22 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 7,585 | 8,116 | 8,343.50 | 8,614.90 | 8,820.70 | 9,161.30 | 9,515.05 | 9,882.46 | 10,264.06 | 10,660.39 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,931.40 | 2,246.30 | 2,551.10 | 2,806.50 | 2,705.40 | 2,692.78 | 2,796.76 | 2,904.75 | 3,016.92 | 3,133.41 |
| Capital Expenditure | -1,057.60 | -886.30 | -726.50 | -864.60 | -1,026.80 | -1,012.29 | -1,051.37 | -1,091.97 | -1,134.14 | -1,177.93 |
| Free Cash Flow | 873.80 | 1,360 | 1,824.60 | 1,941.90 | 1,678.60 | 1,680.50 | 1,745.39 | 1,812.78 | 1,882.78 | 1,955.48 |
| WACC | ||||||||||
| PV LFCF | 1,580.30 | 1,543.47 | 1,507.49 | 1,472.36 | 1,438.04 | |||||
| SUM PV LFCF | 7,541.66 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.34 |
| Free cash flow (t + 1) | 1,994.59 |
| Terminal Value | 45,958.29 |
| Present Value of Terminal Value | 33,797.19 |
Intrinsic Value
| Enterprise Value | 41,338.85 |
|---|---|
| Net Debt | 10,217.10 |
| Equity Value | 31,121.75 |
| Shares Outstanding | 195.31 |
| Equity Value Per Share | 159.35 |