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GuruFocus has detected 5 Warning Signs with Constellation Brands Inc $STZ.
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Constellation Brands Inc (NYSE:STZ)
EV-to-EBITDA
15.68 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Constellation Brands Inc's enterprise value is $42,645 Mil. Constellation Brands Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2017 was $2,721 Mil. Therefore, Constellation Brands Inc's EV/EBITDA ratio for today is 15.68.

STZ' s EV-to-EBITDA Range Over the Past 10 Years
Min: -1807.1   Max: 135.9
Current: 15.68

-1807.1
135.9

During the past 13 years, the highest EV/EBITDA Ratio of Constellation Brands Inc was 135.90. The lowest was -1807.10. And the median was 14.20.

STZ's EV-to-EBITDA is ranked higher than
97% of the 292 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 14.99 vs. STZ: 15.68 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Constellation Brands Inc's stock price is $172.54. Constellation Brands Inc's earnings per share for the trailing twelve months (TTM) ended in Feb. 2017 was $7.53. Therefore, Constellation Brands Inc's P/E Ratio for today is 22.91.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Constellation Brands Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=42645.443/2720.6
=15.68

Constellation Brands Inc's current Enterprise Value is $42,645 Mil.
Constellation Brands Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2017 was 613.4 (May. 2016 ) + 671.1 (Aug. 2016 ) + 625 (Nov. 2016 ) + 811.1 (Feb. 2017 ) = $2,721 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Constellation Brands Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=172.54/7.53
=22.91

Constellation Brands Inc's share price for today is $172.54.
Constellation Brands Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Feb. 2017 was 1.55 (May. 2016 ) + 1.75 (Aug. 2016 ) + 1.98 (Nov. 2016 ) + 2.25 (Feb. 2017 ) = $7.53.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Constellation Brands Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
ev2ebitda 127.5539.1515.269.268.8113.948.3817.2217.8514.69

Constellation Brands Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
ev2ebitda 14.5717.2217.2217.2917.9717.8518.0017.7416.0316.61
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