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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Constellation Brands's Degree of Operating Leverage for the quarter that ended in May. 2026 was -1,298.14. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Constellation Brands's Degree of Operating Leverage or its related term are showing as below:
LTS:0REP's Degree of Operating Leverage is ranked better than 99.51% of 206
companies
in the Beverages - Alcoholic industry
Industry Median: 1.515
vs LTS:0REP: -1298.14
Constellation Brands (LTS:0REP) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Constellation Brands Degree of Operating Leverage Related Terms
Constellation Brands Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Constellation Brands's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Constellation Brands Degree of Operating Leverage Chart
LTS:0REP vs TAP, SAM: Degree of Operating Leverage Comparison
For the Beverages - Brewers subindustry, Constellation Brands's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Constellation Brands Degree of Operating Leverage vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Constellation Brands's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of -1,298.14 mean?
Constellation Brands (LTS:0REP) has a Degree of Operating Leverage of -1,298.14 as of May. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Constellation Brands and its competitors. According to the industry distribution chart, Constellation Brands ranks #1 out of 206 companies in the Beverages - Alcoholic industry, placing it in the top 0.5%.
Is Constellation Brands' Degree of Operating Leverage too high?
Constellation Brands' current Degree of Operating Leverage is -1,298.14. Based on the distribution chart, Constellation Brands ranks #1 out of 206 companies in the Beverages - Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Constellation Brands has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Constellation Brands' Degree of Operating Leverage compare to TAP and SAM?
According to the Beverages - Alcoholic industry distribution chart, Constellation Brands ranks #1 out of 206 companies for Degree of Operating Leverage. This places Constellation Brands in the top 1% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.52. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Beverages - Alcoholic company?
The median Degree of Operating Leverage among Beverages - Alcoholic companies is 1.52, based on 206 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Constellation Brands and its competitors. For the Beverages - Alcoholic industry, the median Degree of Operating Leverage is 1.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Brands's current Degree of Operating Leverage is -1,298.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Constellation Brands stock overvalued right now?
Constellation Brands (LTS:0REP) has a current Degree of Operating Leverage of -1,298.14. The stock's GF Value™ is CHF272.60, compared to a current price of CHF196.36 — trading 28% below its estimated fair value. The current Degree of Operating Leverage is -1,298.14. Constellation Brands' overall GF Score™ is 60/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Constellation Brands (LTS:0REP), the current Degree of Operating Leverage is -1,298.14 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Constellation Brands (LTS:0REP) Overvalued in 2026?
Based on GuruFocus' analysis, Constellation Brands stock appears to be undervalued.
The current stock price of CHF196.36 is trading 28% below its estimated GF Value™ of CHF272.60.
Key valuation signals for LTS:0REP:
Degree of Operating Leverage: -1,298.14
GF Value™: CHF272.60 vs. price of CHF196.36 (28% below fair value)
No single metric tells the full story. See the LTS:0REP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Constellation Brands is the largest provider of alcoholic beverages across the beer, wine, and spirits categories in the US, generating more than 90% of revenue from Mexican beer imports under top-selling brands such as Modelo and Corona. The rest of the business includes some remaining wine and spirits brands, categories where the company has pruned assets in recent years. With its exclusive rights tied to the Mexican beer brands effective only in the US, the firm has limited revenue exposure to international markets. Constellation owns a 10% stake in Canopy Growth, a medicinal and recreational cannabis producer in Canada, and has a 50/50 joint venture with glass manufacturer Owens-Illinois in Mexico.
60GF Score
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