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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-EBIT
18.39 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Constellation Brands Inc's enterprise value is $44,636 Mil. Constellation Brands Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was $2,427 Mil. Therefore, Constellation Brands Inc's EV/EBIT ratio for today is 18.39.

STZ' s EV-to-EBIT Range Over the Past 10 Years
Min: -137.2   Max: 533.7
Current: 18.39

-137.2
533.7

During the past 13 years, the highest EV/EBIT Ratio of Constellation Brands Inc was 533.70. The lowest was -137.20. And the median was 16.10.

STZ's EV-to-EBIT is ranked lower than
56% of the 180 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 17.41 vs. STZ: 18.39 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Constellation Brands Inc's enterprise value for the quarter that ended in Feb. 2017 was $39,959 Mil. Constellation Brands Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was $2,427 Mil. Constellation Brands Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2017 was 6.07%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=44635.680/2426.7
=18.39

Constellation Brands Inc's current Enterprise Value is $44,636 Mil.
Constellation Brands Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was 553.4 (May. 2016 ) + 610.9 (Aug. 2016 ) + 561.5 (Nov. 2016 ) + 700.9 (Feb. 2017 ) = $2,427 Mil.

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


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Constellation Brands Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Feb. 2017 )=EBIT (TTM)/Enterprise Value (Q: Feb. 2017 )
=2426.7/39958.726
=6.07 %

Constellation Brands Inc's Enterprise Value for the quarter that ended in Feb. 2017 was $39,959 Mil.
Constellation Brands Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was 553.4 (May. 2016 ) + 610.9 (Aug. 2016 ) + 561.5 (Nov. 2016 ) + 700.9 (Feb. 2017 ) = $2,427 Mil.

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


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


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
ev2ebit -101.70246.7822.9011.0910.0816.298.9019.5220.0216.47

Constellation Brands Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
ev2ebit 16.3819.5219.5219.4920.1420.0220.0919.7117.8316.47
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