Discounted Cash Flow (DCF) Analysis Levered
Constellation Brands, Inc. (STZ)
$241.61
-2.80 (-1.15%)
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 | 10,177.20 | 10,783.34 | 11,425.58 | 12,106.07 | 12,827.09 | 13,591.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,246.30 | 2,551.10 | 2,806.50 | 2,705.40 | 2,756.90 | 3,204.61 | 3,395.47 | 3,597.70 | 3,811.97 | 4,039.01 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -886.30 | -726.50 | -864.60 | -1,026.80 | -1,035.40 | -1,110.22 | -1,176.34 | -1,246.40 | -1,320.64 | -1,399.29 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,360 | 1,824.60 | 1,941.90 | 1,678.60 | 1,721.50 | 2,094.39 | 2,219.13 | 2,351.29 | 2,491.33 | 2,639.71 |
Weighted Average Cost Of Capital
| Share price | $ 241.61 |
|---|---|
| Beta | 1.031 |
| Diluted Shares Outstanding | 169.34 |
| Cost of Debt | |
| Tax Rate | 118.51 |
| After-tax Cost of Debt | -0.59% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.609 |
| Total Debt | 12,461.30 |
| Total Equity | 40,913.51 |
| Total Capital | 53,374.81 |
| Debt Weighting | 23.35 |
| Equity Weighting | 76.65 |
| 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 | 10,177.20 | 10,783.34 | 11,425.58 | 12,106.07 | 12,827.09 | 13,591.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,246.30 | 2,551.10 | 2,806.50 | 2,705.40 | 2,756.90 | 3,204.61 | 3,395.47 | 3,597.70 | 3,811.97 | 4,039.01 |
| Capital Expenditure | -886.30 | -726.50 | -864.60 | -1,026.80 | -1,035.40 | -1,110.22 | -1,176.34 | -1,246.40 | -1,320.64 | -1,399.29 |
| Free Cash Flow | 1,360 | 1,824.60 | 1,941.90 | 1,678.60 | 1,721.50 | 2,094.39 | 2,219.13 | 2,351.29 | 2,491.33 | 2,639.71 |
| WACC | ||||||||||
| PV LFCF | 1,438.59 | 1,431.78 | 1,425 | 1,418.25 | 1,411.54 | |||||
| SUM PV LFCF | 9,743.78 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.46 |
| Free cash flow (t + 1) | 2,692.51 |
| Terminal Value | 60,370.16 |
| Present Value of Terminal Value | 44,145.86 |
Intrinsic Value
| Enterprise Value | 53,889.64 |
|---|---|
| Net Debt | 12,327.80 |
| Equity Value | 41,561.84 |
| Shares Outstanding | 169.34 |
| Equity Value Per Share | 245.44 |