Price to Sales (P/S)
since 2005
Calculation
Constellation Brands Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Apr 21, 2022 | 5.42 | = | 254.21 | ÷ | 46.86 | 46.86 | = | 8,820,700 | ÷ | 188,217,466 | |
| Apr 20, 2021 | 5.37 | = | 238.31 | ÷ | 44.40 | 44.40 | = | 8,614,900 | ÷ | 194,027,715 | |
| Apr 21, 2020 | 3.54 | = | 153.02 | ÷ | 43.27 | 43.27 | = | 8,343,500 | ÷ | 192,840,856 | |
| Apr 23, 2019 | 4.89 | = | 207.48 | ÷ | 42.41 | 42.41 | = | 8,116,000 | ÷ | 191,349,811 | |
| Apr 23, 2018 | 5.76 | = | 228.26 | ÷ | 39.63 | 39.63 | = | 7,585,000 | ÷ | 191,391,478 | |
| Apr 27, 2017 | 4.55 | = | 171.06 | ÷ | 37.64 | 37.64 | = | 7,331,500 | ÷ | 194,800,645 | |
| Apr 25, 2016 | 4.78 | = | 156.84 | ÷ | 32.78 | 32.78 | = | 6,548,400 | ÷ | 199,768,177 | |
| Apr 28, 2015 | 3.78 | = | 117.12 | ÷ | 30.95 | 30.95 | = | 6,028,000 | ÷ | 194,743,958 | |
| Apr 29, 2014 | 3.14 | = | 79.75 | ÷ | 25.38 | 25.38 | = | 4,867,700 | ÷ | 191,793,326 | |
| Apr 29, 2013 | 3.17 | = | 47.75 | ÷ | 15.06 | 15.06 | = | 2,796,100 | ÷ | 185,672,486 | |
| Apr 30, 2012 | 1.54 | = | 21.60 | ÷ | 14.05 | 14.05 | = | 2,654,300 | ÷ | 188,878,055 | |
| Apr 29, 2011 | 1.43 | = | 22.39 | ÷ | 15.64 | 15.64 | = | 3,332,000 | ÷ | 213,022,885 | |
| Apr 29, 2010 | 1.17 | = | 18.55 | ÷ | 15.79 | 15.79 | = | 3,364,800 | ÷ | 213,118,311 | |
| Apr 29, 2009 | 0.68 | = | 11.23 | ÷ | 16.54 | 16.54 | = | 3,654,600 | ÷ | 220,996,724 | |
| Apr 29, 2008 | 1.08 | = | 18.73 | ÷ | 17.38 | 17.38 | = | 3,773,000 | ÷ | 217,099,937 | |
| Apr 30, 2007 | 1.01 | = | 22.41 | ÷ | 22.19 | 22.19 | = | 5,216,400 | ÷ | 235,056,959 | |
| May 2, 2006 | 1.21 | = | 24.99 | ÷ | 20.60 | 20.60 | = | 4,603,448 | ÷ | 223,472,234 | |
| May 16, 2005 | 1.45 | = | 26.90 | ÷ | 18.59 | 18.59 | = | 4,087,638 | ÷ | 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 analysis of the price-to-sales (P/S) ratio reveals a distinct shift in market valuation over the observed period, transitioning from a conservative valuation phase to a sustained premium valuation phase.
- Early Valuation Phase (2005–2012)
- During this period, the P/S ratio remained relatively low and stable, fluctuating between 0.68 and 1.54. A notable trough occurred in 2009, where the ratio reached its lowest point of 0.68, coinciding with a significant decline in share price. Throughout these years, the market valuation closely mirrored the modest growth in sales per share, indicating a period of valuation stability.
- Valuation Expansion (2013–2018)
- A sharp inflection point is observed in 2013, where the P/S ratio jumped from 1.54 to 3.17. This upward trajectory continued for several years, peaking at 5.76 in 2018. This trend suggests a fundamental change in investor perception, as the market began assigning a significantly higher multiple to each dollar of revenue. This expansion was driven by a combination of aggressive share price appreciation and a marked increase in sales per share starting in 2014.
- Recent Volatility and Stabilization (2019–2022)
- The period following 2018 was characterized by volatility. A contraction is evident by 2020, with the P/S ratio dropping to 3.54, reflecting a decline in share price that outpaced the growth in sales per share. However, a strong recovery followed, with the ratio returning to a premium level of 5.42 by 2022. This indicates a restoration of market confidence and a return to the higher valuation multiples established in the mid-2010s.
- Revenue Efficiency and Pricing Power
- Sales per share exhibited a steady increase from 14.05 in 2012 to 46.86 in 2022. The fact that the P/S ratio remained elevated (above 5.0) in the final years of the data set, despite the significant increase in the sales base, suggests that the market views the company's revenue growth as high-quality and sustainable.
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Comparison to Competitors
Constellation Brands Inc., P/S, long-term trends, comparison to competitors
| Constellation Brands Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Apr 21, 2022 | 5.42 | 6.02 | 2.85 | 2.75 | 5.00 |
| Apr 20, 2021 | 5.37 | 6.99 | 3.24 | 2.93 | 5.33 |
| Apr 21, 2020 | 3.54 | 6.55 | 2.99 | 2.65 | 4.65 |
| Apr 23, 2019 | 4.89 | 6.75 | 3.25 | 3.03 | 4.57 |
| Apr 23, 2018 | 5.76 | 6.15 | 2.61 | 2.52 | 4.03 |
| Apr 27, 2017 | 4.55 | 5.31 | 2.42 | 2.51 | 5.57 |
| Apr 25, 2016 | 4.78 | 4.28 | 2.67 | 2.43 | 5.96 |
| Apr 28, 2015 | 3.78 | 4.32 | 2.11 | 2.22 | 5.28 |
| Apr 29, 2014 | 3.14 | 3.99 | 1.78 | 2.23 | 4.32 |
| Apr 29, 2013 | 3.17 | 3.58 | 1.63 | 1.79 | 4.01 |
| Apr 30, 2012 | 1.54 | 3.57 | 1.35 | 1.78 | 4.91 |
| Apr 29, 2011 | 1.43 | 3.36 | 1.23 | 1.50 | 4.60 |
| Apr 29, 2010 | 1.17 | 4.18 | 1.13 | 1.74 | 4.11 |
| Apr 29, 2009 | 0.68 | 3.92 | 1.06 | 2.27 | 3.68 |
| Apr 29, 2008 | 1.08 | 2.98 | 0.79 | 1.88 | 2.67 |
| Apr 30, 2007 | 1.01 | 4.79 | 1.30 | 2.91 | — |
| May 2, 2006 | 1.21 | 4.57 | 1.55 | 3.01 | — |
| May 16, 2005 | 1.45 | 4.30 | 1.50 | 3.03 | — |
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/S, long-term trends, comparison to sector (food, beverage & tobacco)
| Constellation Brands Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Apr 21, 2022 | 5.42 | 3.87 |
| Apr 20, 2021 | 5.37 | 4.28 |
| Apr 21, 2020 | 3.54 | 3.88 |
| Apr 23, 2019 | 4.89 | 4.22 |
| Apr 23, 2018 | 5.76 | 3.59 |
| Apr 27, 2017 | 4.55 | 3.71 |
| Apr 25, 2016 | 4.78 | 3.56 |
| Apr 28, 2015 | 3.78 | 3.27 |
| Apr 29, 2014 | 3.14 | 2.95 |
| Apr 29, 2013 | 3.17 | 2.61 |
| Apr 30, 2012 | 1.54 | 2.72 |
| Apr 29, 2011 | 1.43 | 2.35 |
| Apr 29, 2010 | 1.17 | 2.45 |
| Apr 29, 2009 | 0.68 | 2.54 |
| Apr 29, 2008 | 1.08 | 1.95 |
| Apr 30, 2007 | 1.01 | 2.86 |
| May 2, 2006 | 1.21 | 2.88 |
| May 16, 2005 | 1.45 | 2.77 |
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/S, long-term trends, comparison to industry (consumer staples)
| Constellation Brands Inc. | Consumer Staples | |
|---|---|---|
| Apr 21, 2022 | 5.42 | 1.54 |
| Apr 20, 2021 | 5.37 | 1.61 |
| Apr 21, 2020 | 3.54 | 1.49 |
| Apr 23, 2019 | 4.89 | 1.47 |
| Apr 23, 2018 | 5.76 | 1.24 |
| Apr 27, 2017 | 4.55 | 1.25 |
| Apr 25, 2016 | 4.78 | 1.26 |
| Apr 28, 2015 | 3.78 | 1.23 |
| Apr 29, 2014 | 3.14 | 1.18 |
| Apr 29, 2013 | 3.17 | 1.14 |
| Apr 30, 2012 | 1.54 | 1.10 |
| Apr 29, 2011 | 1.43 | 1.03 |
| Apr 29, 2010 | 1.17 | 1.08 |
| Apr 29, 2009 | 0.68 | 1.01 |
| Apr 29, 2008 | 1.08 | 1.04 |
| Apr 30, 2007 | 1.01 | 1.20 |
| May 2, 2006 | 1.21 | 1.25 |
| May 16, 2005 | 1.45 | 1.26 |
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).