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Constellation BrandsSTZ +3.10%68 5-Year Yield-on-Cost % is 4.32 as of Jul. 16, 2026, which is 116% above its 10-year median of 2.00. GuruFocus rates STZ with a GF Score™ of 68/100 and a GF Value™ of $176.15 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 148 Beverages - Alcoholic companies, Constellation Brands ranks better than 50.68% on this metric.
Constellation Brands's yield on cost for the quarter that ended in May. 2026 was 4.32.
The historical rank and industry rank for Constellation Brands's 5-Year Yield-on-Cost % or its related term are showing as below:
STZ'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.13 Med: 2 Max: 4.54
Current: 4.32
During the past 13 years, Constellation Brands's highest Yield on Cost was 4.54. The lowest was 1.13. And the median was 2.00.
STZ's 5-Year Yield-on-Cost % is ranked better than 50.68% of 148
companies
in the Beverages - Alcoholic industry
Industry Median: 4.365
vs STZ: 4.32
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Constellation Brands 5-Year Yield-on-Cost % Related Terms
STZ vs TAP, SAM, BUD: 5-Year Yield-on-Cost % Comparison
For the Beverages - Brewers subindustry, Constellation Brands's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Constellation Brands's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Constellation Brands (STZ) has a 5-Year Yield-on-Cost % of 4.32 as of Jul. 16, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Constellation Brands and its competitors. This is 116% above median its historical median of 2.00. Over the past decade, Constellation Brands' 5-Year Yield-on-Cost % has ranged from 1.13 to 4.54. According to the industry distribution chart, Constellation Brands ranks #73 out of 148 companies in the Beverages - Alcoholic industry, placing it in the top 49.3%.
Is Constellation Brands' 5-Year Yield-on-Cost % too high?
Constellation Brands' current 5-Year Yield-on-Cost % of 4.32 is 116% above median its 10-year median of 2.00. Over the past 10 years, this metric has ranged from a low of 1.13 to a high of 4.54. The Beverages - Alcoholic industry median 5-Year Yield-on-Cost % is 4.37. Constellation Brands' value of 4.32 is 1% below this industry median. Based on the distribution chart, Constellation Brands ranks #73 out of 148 companies in the Beverages - Alcoholic industry, which is above the industry midpoint. Overall, Constellation Brands has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Constellation Brands' 5-Year Yield-on-Cost % compare to TAP and SAM?
According to the Beverages - Alcoholic industry distribution chart, Constellation Brands ranks #73 out of 148 companies for 5-Year Yield-on-Cost %. This puts Constellation Brands in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 4.37. Constellation Brands' value of 4.32 is 1% below this benchmark. Historically, Constellation Brands' own 5-Year Yield-on-Cost % has ranged from 1.13 to 4.54 over the past decade. While the company's 10-year median is 2.00 vs. the industry median of 4.37, Constellation Brands has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Beverages - Alcoholic company?
The median 5-Year Yield-on-Cost % among Beverages - Alcoholic companies is 4.37, based on 148 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Brands's current 5-Year Yield-on-Cost % of 4.32 is 1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Constellation Brands and its competitors. For the Beverages - Alcoholic industry, the median 5-Year Yield-on-Cost % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Brands's current 5-Year Yield-on-Cost % is 4.32, which is 116% above median its own 10-year median of 2.00. 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?
Based on GuruFocus' analysis, Constellation Brands (STZ) is currently considered Modestly Undervalued. The stock's GF Value™ is $176.15, compared to a current price of $135.72 — trading 23% below its estimated fair value. The current 5-Year Yield-on-Cost % is 4.32, which is 116% above median its 10-year median of 2.00 and 1% below the Beverages - Alcoholic industry median of 4.37. Constellation Brands' overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Constellation Brands (STZ), the current 5-Year Yield-on-Cost % is 4.32 as of Jul. 16, 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 (STZ) Overvalued in 2026?
Based on GuruFocus' analysis, Constellation Brands stock appears to be undervalued.
The current stock price of $135.72 is trading 23% below its estimated GF Value™ of $176.15.
GuruFocus considers Constellation Brands to be Modestly Undervalued.
Key valuation signals for STZ:
5-Year Yield-on-Cost %: 4.32 (116% above median its 10-year median of 2.00)
GF Value™: $176.15 vs. price of $135.72 (23% below fair value)
Industry Position: 1% below the Beverages - Alcoholic median (#73 of 148)
No single metric tells the full story. See the STZ 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.
68GF Score
Get the complete analysis for STZ
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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