Price to Earnings (P/E)
since 2005
Calculation
Constellation Brands Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss) attributable to CBI common stockholders1 (in thousands) | ÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Apr 21, 2022 | — | = | 254.21 | ÷ | -0.21 | -0.21 | = | -40,400 | ÷ | 188,217,466 | |
| Apr 20, 2021 | 23.14 | = | 238.31 | ÷ | 10.30 | 10.30 | = | 1,998,000 | ÷ | 194,027,715 | |
| Apr 21, 2020 | — | = | 153.02 | ÷ | -0.06 | -0.06 | = | -11,800 | ÷ | 192,840,856 | |
| Apr 23, 2019 | 11.55 | = | 207.48 | ÷ | 17.96 | 17.96 | = | 3,435,900 | ÷ | 191,349,811 | |
| Apr 23, 2018 | 18.84 | = | 228.26 | ÷ | 12.12 | 12.12 | = | 2,318,900 | ÷ | 191,391,478 | |
| Apr 27, 2017 | 21.71 | = | 171.06 | ÷ | 7.88 | 7.88 | = | 1,535,100 | ÷ | 194,800,645 | |
| Apr 25, 2016 | 29.70 | = | 156.84 | ÷ | 5.28 | 5.28 | = | 1,054,900 | ÷ | 199,768,177 | |
| Apr 28, 2015 | 27.18 | = | 117.12 | ÷ | 4.31 | 4.31 | = | 839,300 | ÷ | 194,743,958 | |
| Apr 29, 2014 | 7.87 | = | 79.75 | ÷ | 10.13 | 10.13 | = | 1,943,100 | ÷ | 191,793,326 | |
| Apr 29, 2013 | 22.86 | = | 47.75 | ÷ | 2.09 | 2.09 | = | 387,800 | ÷ | 185,672,486 | |
| Apr 30, 2012 | 9.17 | = | 21.60 | ÷ | 2.36 | 2.36 | = | 445,000 | ÷ | 188,878,055 | |
| Apr 29, 2011 | 8.52 | = | 22.39 | ÷ | 2.63 | 2.63 | = | 559,500 | ÷ | 213,022,885 | |
| Apr 29, 2010 | 39.81 | = | 18.55 | ÷ | 0.47 | 0.47 | = | 99,300 | ÷ | 213,118,311 | |
| Apr 29, 2009 | — | = | 11.23 | ÷ | -1.36 | -1.36 | = | -301,400 | ÷ | 220,996,724 | |
| Apr 29, 2008 | — | = | 18.73 | ÷ | -2.82 | -2.82 | = | -613,300 | ÷ | 217,099,937 | |
| Apr 30, 2007 | 16.11 | = | 22.41 | ÷ | 1.39 | 1.39 | = | 327,000 | ÷ | 235,056,959 | |
| May 2, 2006 | 17.70 | = | 24.99 | ÷ | 1.41 | 1.41 | = | 315,458 | ÷ | 223,472,234 | |
| May 16, 2005 | 22.18 | = | 26.90 | ÷ | 1.21 | 1.21 | = | 266,660 | ÷ | 219,867,600 |
Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28), 10-K (reporting date: 2016-02-29), 10-K (reporting date: 2015-02-28), 10-K (reporting date: 2014-02-28), 10-K (reporting date: 2013-02-28), 10-K (reporting date: 2012-02-29), 10-K (reporting date: 2011-02-28), 10-K (reporting date: 2010-02-28), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-02-29), 10-K (reporting date: 2007-02-28), 10-K (reporting date: 2006-02-28), 10-K (reporting date: 2005-02-28).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Constellation Brands Inc. Annual Report.
The financial data reveals a period of significant volatility and subsequent growth in valuation and earnings performance between 2005 and 2022. A general upward trajectory in share price is evident over the long term, despite intermittent periods of earnings instability that rendered the price-to-earnings ratio inapplicable during specific fiscal years.
- Share Price Dynamics
- The share price experienced an initial decline from 2005, reaching a low of 11.23 USD in 2009. Following this trough, a sustained bullish trend occurred, with the price ascending to 228.26 USD by 2018. While a correction occurred in 2020, where the price fell to 153.02 USD, a subsequent recovery led to a period peak of 254.21 USD in 2022.
- Earnings Per Share (EPS) Performance
- Earnings exhibited substantial fluctuations, characterized by three distinct periods of negative returns in 2008, 2009, 2020, and 2022. A notable surge in profitability occurred in 2014, where EPS peaked at 10.13 USD, followed by a period of sustained growth that reached a high of 17.96 USD in 2019. This volatility in earnings directly impacted the stability of the valuation multiples.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio demonstrates high variability, reflecting changing market sentiment and earnings consistency. After a period of contraction between 2005 and 2007, the ratio spiked to 39.81 in 2010 during the early recovery phase. A subsequent period of low valuation was observed in 2011 and 2012, with ratios falling between 8.52 and 9.17. Valuation multiples expanded again between 2014 and 2016, peaking at 29.70, before entering a compression phase that brought the ratio down to 11.55 by 2019. The most recent recorded ratio in 2021 stood at 23.14.
- Correlation and Valuation Insights
- The relationship between share price and EPS suggests that market valuation often decoupled from immediate earnings. For instance, in 2014, a sharp increase in EPS to 10.13 USD coincided with a P/E ratio compression to 7.87, indicating that earnings growth outpaced the increase in share price. Conversely, the absence of P/E ratios in 2008, 2009, 2020, and 2022 underscores the impact of negative earnings on traditional valuation metrics.
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Comparison to Competitors
Constellation Brands Inc., P/E, long-term trends, comparison to competitors
| Constellation Brands Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Apr 21, 2022 | — | 27.12 | 33.07 | 26.71 | 17.54 |
| Apr 20, 2021 | 23.14 | 27.63 | 21.64 | 30.58 | 18.37 |
| Apr 21, 2020 | — | 27.91 | 22.33 | 26.15 | 16.55 |
| Apr 23, 2019 | 11.55 | 28.21 | 21.72 | 27.83 | 18.94 |
| Apr 23, 2018 | 18.84 | 30.47 | 20.03 | 13.01 | 15.08 |
| Apr 27, 2017 | 21.71 | 150.54 | 21.45 | 32.81 | 26.52 |
| Apr 25, 2016 | 29.70 | 27.48 | 41.76 | 24.09 | 22.84 |
| Apr 28, 2015 | 27.18 | 26.01 | 8.59 | 25.72 | 20.57 |
| Apr 29, 2014 | 7.87 | 25.87 | 27.92 | 22.86 | 17.14 |
| Apr 29, 2013 | 22.86 | 19.54 | 14.69 | 17.66 | 14.60 |
| Apr 30, 2012 | 9.17 | 19.00 | 15.56 | 18.84 | 17.49 |
| Apr 29, 2011 | 8.52 | 18.27 | 19.01 | 15.45 | 16.64 |
| Apr 29, 2010 | 39.81 | 12.42 | 13.54 | 15.93 | 15.41 |
| Apr 29, 2009 | — | 17.81 | 14.11 | 16.49 | 14.53 |
| Apr 29, 2008 | — | 16.37 | 11.54 | 15.82 | 9.95 |
| Apr 30, 2007 | 16.11 | 23.10 | 18.67 | 20.35 | — |
| May 2, 2006 | 17.70 | 21.69 | 17.35 | 18.79 | — |
| May 16, 2005 | 22.18 | 20.40 | 19.38 | 24.28 | — |
Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28), 10-K (reporting date: 2016-02-29), 10-K (reporting date: 2015-02-28), 10-K (reporting date: 2014-02-28), 10-K (reporting date: 2013-02-28), 10-K (reporting date: 2012-02-29), 10-K (reporting date: 2011-02-28), 10-K (reporting date: 2010-02-28), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-02-29), 10-K (reporting date: 2007-02-28), 10-K (reporting date: 2006-02-28), 10-K (reporting date: 2005-02-28).
Comparison to Sector (Food, Beverage & Tobacco)
Constellation Brands Inc., P/E, long-term trends, comparison to sector (food, beverage & tobacco)
| Constellation Brands Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Apr 21, 2022 | — | 24.66 |
| Apr 20, 2021 | 23.14 | 24.78 |
| Apr 21, 2020 | — | 23.23 |
| Apr 23, 2019 | 11.55 | 24.75 |
| Apr 23, 2018 | 18.84 | 18.05 |
| Apr 27, 2017 | 21.71 | 37.84 |
| Apr 25, 2016 | 29.70 | 26.08 |
| Apr 28, 2015 | 27.18 | 19.86 |
| Apr 29, 2014 | 7.87 | 22.41 |
| Apr 29, 2013 | 22.86 | 16.88 |
| Apr 30, 2012 | 9.17 | 18.09 |
| Apr 29, 2011 | 8.52 | 17.18 |
| Apr 29, 2010 | 39.81 | 14.06 |
| Apr 29, 2009 | — | 16.01 |
| Apr 29, 2008 | — | 13.43 |
| Apr 30, 2007 | 16.11 | 21.20 |
| May 2, 2006 | 17.70 | 19.54 |
| May 16, 2005 | 22.18 | 21.53 |
Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28), 10-K (reporting date: 2016-02-29), 10-K (reporting date: 2015-02-28), 10-K (reporting date: 2014-02-28), 10-K (reporting date: 2013-02-28), 10-K (reporting date: 2012-02-29), 10-K (reporting date: 2011-02-28), 10-K (reporting date: 2010-02-28), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-02-29), 10-K (reporting date: 2007-02-28), 10-K (reporting date: 2006-02-28), 10-K (reporting date: 2005-02-28).
Comparison to Industry (Consumer Staples)
Constellation Brands Inc., P/E, long-term trends, comparison to industry (consumer staples)
| Constellation Brands Inc. | Consumer Staples | |
|---|---|---|
| Apr 21, 2022 | — | 25.35 |
| Apr 20, 2021 | 23.14 | 26.07 |
| Apr 21, 2020 | — | 24.12 |
| Apr 23, 2019 | 11.55 | 31.92 |
| Apr 23, 2018 | 18.84 | 20.62 |
| Apr 27, 2017 | 21.71 | 22.78 |
| Apr 25, 2016 | 29.70 | 21.50 |
| Apr 28, 2015 | 27.18 | 21.97 |
| Apr 29, 2014 | 7.87 | 19.71 |
| Apr 29, 2013 | 22.86 | 17.00 |
| Apr 30, 2012 | 9.17 | 16.60 |
| Apr 29, 2011 | 8.52 | 14.81 |
| Apr 29, 2010 | 39.81 | 14.32 |
| Apr 29, 2009 | — | 14.63 |
| Apr 29, 2008 | — | 15.52 |
| Apr 30, 2007 | 16.11 | 19.68 |
| May 2, 2006 | 17.70 | 19.79 |
| May 16, 2005 | 22.18 | 20.04 |
Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28), 10-K (reporting date: 2016-02-29), 10-K (reporting date: 2015-02-28), 10-K (reporting date: 2014-02-28), 10-K (reporting date: 2013-02-28), 10-K (reporting date: 2012-02-29), 10-K (reporting date: 2011-02-28), 10-K (reporting date: 2010-02-28), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-02-29), 10-K (reporting date: 2007-02-28), 10-K (reporting date: 2006-02-28), 10-K (reporting date: 2005-02-28).