Intrinsic value of Constellation Brands Inc - STZ

Previous Close

$206.80

  Intrinsic Value

$140.64

stock screener

  Rating & Target

sell

-32%

Previous close

$206.80

 
Intrinsic value

$140.64

 
Up/down potential

-32%

 
Rating

sell

We calculate the intrinsic value of STZ stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 39.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  9.50
  9.05
  8.64
  8.28
  7.95
  7.66
  7.39
  7.15
  6.94
  6.74
  6.57
  6.41
  6.27
  6.14
  6.03
  5.93
  5.83
  5.75
  5.68
  5.61
  5.55
  5.49
  5.44
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
  5.21
Revenue, $m
  8,306
  9,057
  9,840
  10,655
  11,502
  12,383
  13,298
  14,250
  15,238
  16,266
  17,334
  18,446
  19,602
  20,807
  22,061
  23,369
  24,732
  26,154
  27,639
  29,189
  30,808
  32,500
  34,269
  36,119
  38,054
  40,080
  42,201
  44,421
  46,747
  49,183
Variable operating expenses, $m
  3,364
  3,565
  3,775
  3,993
  4,220
  4,456
  4,701
  4,956
  5,221
  5,496
  4,643
  4,941
  5,251
  5,573
  5,909
  6,260
  6,625
  7,006
  7,403
  7,818
  8,252
  8,705
  9,179
  9,675
  10,193
  10,736
  11,304
  11,899
  12,522
  13,174
Fixed operating expenses, $m
  2,224
  2,273
  2,323
  2,374
  2,426
  2,480
  2,534
  2,590
  2,647
  2,705
  2,765
  2,825
  2,887
  2,951
  3,016
  3,082
  3,150
  3,219
  3,290
  3,363
  3,437
  3,512
  3,589
  3,668
  3,749
  3,832
  3,916
  4,002
  4,090
  4,180
Total operating expenses, $m
  5,588
  5,838
  6,098
  6,367
  6,646
  6,936
  7,235
  7,546
  7,868
  8,201
  7,408
  7,766
  8,138
  8,524
  8,925
  9,342
  9,775
  10,225
  10,693
  11,181
  11,689
  12,217
  12,768
  13,343
  13,942
  14,568
  15,220
  15,901
  16,612
  17,354
Operating income, $m
  2,718
  3,220
  3,743
  4,288
  4,856
  5,448
  6,063
  6,704
  7,371
  8,065
  9,926
  10,679
  11,464
  12,282
  13,136
  14,027
  14,957
  15,929
  16,945
  18,007
  19,119
  20,282
  21,500
  22,776
  24,112
  25,513
  26,981
  28,520
  30,135
  31,829
EBITDA, $m
  4,223
  4,758
  5,316
  5,897
  6,502
  7,133
  7,789
  8,471
  9,182
  9,921
  10,691
  11,493
  12,329
  13,200
  14,109
  15,057
  16,048
  17,083
  18,164
  19,295
  20,477
  21,715
  23,011
  24,368
  25,790
  27,280
  28,842
  30,479
  32,196
  33,998
Interest expense (income), $m
  300
  550
  616
  683
  753
  826
  902
  981
  1,063
  1,148
  1,236
  1,328
  1,424
  1,524
  1,627
  1,735
  1,847
  1,965
  2,087
  2,214
  2,347
  2,486
  2,631
  2,782
  2,941
  3,106
  3,280
  3,461
  3,651
  3,850
  4,058
Earnings before tax, $m
  2,168
  2,604
  3,060
  3,535
  4,030
  4,546
  5,083
  5,641
  6,223
  6,829
  8,598
  9,255
  9,941
  10,655
  11,401
  12,179
  12,993
  13,842
  14,731
  15,660
  16,633
  17,651
  18,718
  19,835
  21,005
  22,233
  23,520
  24,869
  26,285
  27,770
Tax expense, $m
  585
  703
  826
  955
  1,088
  1,227
  1,372
  1,523
  1,680
  1,844
  2,321
  2,499
  2,684
  2,877
  3,078
  3,288
  3,508
  3,737
  3,977
  4,228
  4,491
  4,766
  5,054
  5,355
  5,671
  6,003
  6,350
  6,715
  7,097
  7,498
Net income, $m
  1,583
  1,901
  2,234
  2,581
  2,942
  3,319
  3,710
  4,118
  4,543
  4,985
  6,277
  6,756
  7,257
  7,778
  8,323
  8,891
  9,485
  10,105
  10,754
  11,432
  12,142
  12,885
  13,664
  14,479
  15,334
  16,230
  17,169
  18,154
  19,188
  20,272

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  22,508
  24,545
  26,667
  28,875
  31,172
  33,559
  36,039
  38,617
  41,296
  44,080
  46,976
  49,988
  53,123
  56,387
  59,787
  63,330
  67,024
  70,879
  74,901
  79,102
  83,490
  88,075
  92,869
  97,883
  103,128
  108,618
  114,365
  120,382
  126,685
  133,288
Adjusted assets (=assets-cash), $m
  22,508
  24,545
  26,667
  28,875
  31,172
  33,559
  36,039
  38,617
  41,296
  44,080
  46,976
  49,988
  53,123
  56,387
  59,787
  63,330
  67,024
  70,879
  74,901
  79,102
  83,490
  88,075
  92,869
  97,883
  103,128
  108,618
  114,365
  120,382
  126,685
  133,288
Revenue / Adjusted assets
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
Average production assets, $m
  10,988
  11,983
  13,019
  14,097
  15,218
  16,383
  17,594
  18,852
  20,160
  21,519
  22,933
  24,404
  25,934
  27,527
  29,187
  30,917
  32,720
  34,602
  36,566
  38,616
  40,758
  42,997
  45,338
  47,785
  50,346
  53,026
  55,831
  58,769
  61,846
  65,069
Working capital, $m
  2,317
  2,527
  2,745
  2,973
  3,209
  3,455
  3,710
  3,976
  4,251
  4,538
  4,836
  5,146
  5,469
  5,805
  6,155
  6,520
  6,900
  7,297
  7,711
  8,144
  8,595
  9,067
  9,561
  10,077
  10,617
  11,182
  11,774
  12,393
  13,042
  13,722
Total debt, $m
  11,398
  12,645
  13,943
  15,295
  16,700
  18,161
  19,679
  21,257
  22,896
  24,600
  26,372
  28,216
  30,134
  32,132
  34,212
  36,381
  38,642
  41,001
  43,463
  46,033
  48,719
  51,525
  54,459
  57,527
  60,738
  64,097
  67,614
  71,297
  75,154
  79,195
Total liabilities, $m
  13,775
  15,022
  16,320
  17,672
  19,077
  20,538
  22,056
  23,633
  25,273
  26,977
  28,749
  30,593
  32,511
  34,509
  36,589
  38,758
  41,019
  43,378
  45,840
  48,410
  51,096
  53,902
  56,836
  59,904
  63,115
  66,474
  69,991
  73,674
  77,531
  81,572
Total equity, $m
  8,733
  9,524
  10,347
  11,204
  12,095
  13,021
  13,983
  14,983
  16,023
  17,103
  18,227
  19,395
  20,612
  21,878
  23,197
  24,572
  26,005
  27,501
  29,062
  30,691
  32,394
  34,173
  36,033
  37,979
  40,014
  42,144
  44,374
  46,708
  49,154
  51,716
Total liabilities and equity, $m
  22,508
  24,546
  26,667
  28,876
  31,172
  33,559
  36,039
  38,616
  41,296
  44,080
  46,976
  49,988
  53,123
  56,387
  59,786
  63,330
  67,024
  70,879
  74,902
  79,101
  83,490
  88,075
  92,869
  97,883
  103,129
  108,618
  114,365
  120,382
  126,685
  133,288
Debt-to-equity ratio
  1.310
  1.330
  1.350
  1.370
  1.380
  1.390
  1.410
  1.420
  1.430
  1.440
  1.450
  1.450
  1.460
  1.470
  1.470
  1.480
  1.490
  1.490
  1.500
  1.500
  1.500
  1.510
  1.510
  1.510
  1.520
  1.520
  1.520
  1.530
  1.530
  1.530
Adjusted equity ratio
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,583
  1,901
  2,234
  2,581
  2,942
  3,319
  3,710
  4,118
  4,543
  4,985
  6,277
  6,756
  7,257
  7,778
  8,323
  8,891
  9,485
  10,105
  10,754
  11,432
  12,142
  12,885
  13,664
  14,479
  15,334
  16,230
  17,169
  18,154
  19,188
  20,272
Depreciation, amort., depletion, $m
  1,505
  1,538
  1,573
  1,609
  1,646
  1,685
  1,725
  1,767
  1,811
  1,856
  764
  813
  864
  918
  973
  1,031
  1,091
  1,153
  1,219
  1,287
  1,359
  1,433
  1,511
  1,593
  1,678
  1,768
  1,861
  1,959
  2,062
  2,169
Funds from operations, $m
  3,088
  3,439
  3,807
  4,189
  4,588
  5,004
  5,436
  5,885
  6,354
  6,841
  7,041
  7,570
  8,121
  8,696
  9,296
  9,921
  10,575
  11,258
  11,972
  12,719
  13,501
  14,319
  15,175
  16,072
  17,012
  17,997
  19,030
  20,113
  21,250
  22,441
Change in working capital, $m
  201
  210
  218
  227
  236
  246
  255
  265
  276
  287
  298
  310
  323
  336
  350
  365
  380
  397
  414
  432
  452
  472
  494
  516
  540
  565
  592
  620
  649
  680
Cash from operations, $m
  2,887
  3,229
  3,588
  3,962
  4,352
  4,758
  5,180
  5,620
  6,078
  6,554
  6,743
  7,260
  7,798
  8,360
  8,945
  9,557
  10,195
  10,862
  11,558
  12,287
  13,049
  13,847
  14,682
  15,556
  16,472
  17,432
  18,439
  19,494
  20,601
  21,762
Maintenance CAPEX, $m
  -334
  -366
  -399
  -434
  -470
  -507
  -546
  -586
  -628
  -672
  -717
  -764
  -813
  -864
  -918
  -973
  -1,031
  -1,091
  -1,153
  -1,219
  -1,287
  -1,359
  -1,433
  -1,511
  -1,593
  -1,678
  -1,768
  -1,861
  -1,959
  -2,062
New CAPEX, $m
  -956
  -994
  -1,036
  -1,078
  -1,121
  -1,165
  -1,211
  -1,258
  -1,308
  -1,359
  -1,414
  -1,471
  -1,530
  -1,593
  -1,660
  -1,730
  -1,804
  -1,882
  -1,964
  -2,051
  -2,142
  -2,239
  -2,340
  -2,448
  -2,561
  -2,680
  -2,805
  -2,938
  -3,077
  -3,223
Cash from investing activities, $m
  -1,290
  -1,360
  -1,435
  -1,512
  -1,591
  -1,672
  -1,757
  -1,844
  -1,936
  -2,031
  -2,131
  -2,235
  -2,343
  -2,457
  -2,578
  -2,703
  -2,835
  -2,973
  -3,117
  -3,270
  -3,429
  -3,598
  -3,773
  -3,959
  -4,154
  -4,358
  -4,573
  -4,799
  -5,036
  -5,285
Free cash flow, $m
  1,597
  1,869
  2,153
  2,450
  2,761
  3,085
  3,423
  3,775
  4,142
  4,523
  4,612
  5,025
  5,455
  5,902
  6,368
  6,854
  7,361
  7,889
  8,441
  9,017
  9,620
  10,249
  10,908
  11,597
  12,319
  13,074
  13,866
  14,695
  15,565
  16,477
Issuance/(repayment) of debt, $m
  1,212
  1,247
  1,299
  1,351
  1,405
  1,461
  1,518
  1,578
  1,639
  1,704
  1,772
  1,843
  1,918
  1,997
  2,081
  2,168
  2,261
  2,359
  2,462
  2,571
  2,685
  2,806
  2,934
  3,068
  3,210
  3,360
  3,517
  3,683
  3,857
  4,041
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,212
  1,247
  1,299
  1,351
  1,405
  1,461
  1,518
  1,578
  1,639
  1,704
  1,772
  1,843
  1,918
  1,997
  2,081
  2,168
  2,261
  2,359
  2,462
  2,571
  2,685
  2,806
  2,934
  3,068
  3,210
  3,360
  3,517
  3,683
  3,857
  4,041
Total cash flow (excl. dividends), $m
  2,808
  3,115
  3,451
  3,802
  4,166
  4,546
  4,941
  5,353
  5,781
  6,227
  6,384
  6,868
  7,373
  7,899
  8,449
  9,023
  9,622
  10,248
  10,903
  11,588
  12,305
  13,056
  13,842
  14,666
  15,529
  16,434
  17,383
  18,378
  19,422
  20,518
Retained Cash Flow (-), $m
  -758
  -790
  -823
  -857
  -891
  -926
  -962
  -1,000
  -1,039
  -1,080
  -1,124
  -1,169
  -1,216
  -1,266
  -1,319
  -1,375
  -1,433
  -1,495
  -1,561
  -1,630
  -1,702
  -1,779
  -1,860
  -1,945
  -2,035
  -2,130
  -2,230
  -2,335
  -2,445
  -2,562
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  2,050
  2,325
  2,628
  2,945
  3,275
  3,620
  3,979
  4,353
  4,742
  5,147
  5,261
  5,700
  6,157
  6,633
  7,130
  7,648
  8,188
  8,753
  9,342
  9,958
  10,603
  11,277
  11,982
  12,720
  13,494
  14,304
  15,153
  16,043
  16,977
  17,956
Discount rate, %
  8.20
  8.61
  9.04
  9.49
  9.97
  10.47
  10.99
  11.54
  12.12
  12.72
  13.36
  14.02
  14.73
  15.46
  16.24
  17.05
  17.90
  18.79
  19.73
  20.72
  21.76
  22.84
  23.99
  25.19
  26.45
  27.77
  29.16
  30.61
  32.15
  33.75
PV of cash for distribution, $m
  1,895
  1,971
  2,027
  2,049
  2,037
  1,992
  1,918
  1,817
  1,694
  1,554
  1,325
  1,180
  1,032
  886
  746
  616
  498
  394
  305
  230
  170
  122
  85
  58
  38
  24
  15
  9
  5
  3
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Constellation Brands, Inc. is an international beverage alcohol company. The Company is a producer and marketer of beer, wine and spirits with operations in the United States, Canada, Mexico, New Zealand and Italy. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. It is a multi-category supplier (beer, wine and spirits) of beverage alcohol in the United States. It sells a number of brands in the import and craft beer categories, including Corona Extra, Corona Light, Modelo Especial, Ballast Point and others. It is a producer and marketer of wine, and sells a number of wine brands across various categories, including table wine, sparkling wine and dessert wine, and across all price points, such as popular, premium and luxury categories. Some of its wine and spirits brands sold in the United States, which comprise its U.S. Focus Brands (Focus Brands) include Meiomi, Robert Mondavi, Wild Horse and others.

FINANCIAL RATIOS  of  Constellation Brands Inc (STZ)

Valuation Ratios
P/E Ratio 26.2
Price to Sales 5.5
Price to Book 5.8
Price to Tangible Book
Price to Cash Flow 23.7
Price to Free Cash Flow 51
Growth Rates
Sales Growth Rate 12%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 1.8%
Cap. Spend. - 3 Yr. Gr. Rate 32.3%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 112%
Total Debt to Equity 134.1%
Interest Coverage 8
Management Effectiveness
Return On Assets 9.9%
Ret/ On Assets - 3 Yr. Avg. 8.4%
Return On Total Capital 10%
Ret/ On T. Cap. - 3 Yr. Avg. 8.1%
Return On Equity 22.8%
Return On Equity - 3 Yr. Avg. 18.5%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 48.1%
Gross Margin - 3 Yr. Avg. 46%
EBITDA Margin 36.6%
EBITDA Margin - 3 Yr. Avg. 32%
Operating Margin 32.7%
Oper. Margin - 3 Yr. Avg. 28.2%
Pre-Tax Margin 28.5%
Pre-Tax Margin - 3 Yr. Avg. 23.7%
Net Profit Margin 20.9%
Net Profit Margin - 3 Yr. Avg. 17%
Effective Tax Rate 26.5%
Eff/ Tax Rate - 3 Yr. Avg. 28.3%
Payout Ratio 20.5%

STZ stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the STZ stock intrinsic value calculation we used $7585 million for the last fiscal year's total revenue generated by Constellation Brands Inc. The default revenue input number comes from 0001 income statement of Constellation Brands Inc. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our STZ stock valuation model: a) initial revenue growth rate of 9.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.2%, whose default value for STZ is calculated based on our internal credit rating of Constellation Brands Inc, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Constellation Brands Inc.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of STZ stock the variable cost ratio is equal to 41.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2176 million in the base year in the intrinsic value calculation for STZ stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Constellation Brands Inc.

Corporate tax rate of 27% is the nominal tax rate for Constellation Brands Inc. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the STZ stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for STZ are equal to 132.3%.

Life of production assets of 53.5 years is the average useful life of capital assets used in Constellation Brands Inc operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for STZ is equal to 27.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $7975.1 million for Constellation Brands Inc - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 189.850 million for Constellation Brands Inc is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Constellation Brands Inc at the current share price and the inputted number of shares is $39.3 billion.

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