Name: Constellation Brands Inc. (NYSE:STZ) | Enterprise Value to EBITDA (EV/EBITDA)
Creator: Stock Analysis on Net

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

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Constellation Brands Inc., EBITDA calculation

US$ in thousands

12 months ended:	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
Net income (loss) attributable to CBI	(40,400)	1,998,000)	(11,800)	3,435,900)	2,318,900)	1,535,100)
Add: Net income attributable to noncontrolling interest	41,400)	33,800)	33,200)	23,200)	11,900)	4,100)
Add: Income tax expense	309,400)	511,100)	(966,600)	685,900)	11,900)	554,200)
Earnings before tax (EBT)	310,400)	2,542,900)	(945,200)	4,145,000)	2,342,700)	2,093,400)
Add: Interest expense	356,400)	385,700)	428,700)	367,100)	332,000)	333,300)
Earnings before interest and tax (EBIT)	666,800)	2,928,600)	(516,500)	4,512,100)	2,674,700)	2,426,700)
Add: Depreciation	337,300)	293,800)	326,500)	333,100)	293,800)	237,500)
Add: Impairment and amortization of intangible assets	5,100)	11,300)	16,700)	114,000)	92,700)	56,400)
Earnings before interest, tax, depreciation and amortization (EBITDA)	1,009,200)	3,233,700)	(173,300)	4,959,200)	3,061,200)	2,720,600)

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).

The financial performance from 2017 to 2022 is characterized by significant volatility, with a period of robust growth followed by sharp declines and a partial recovery. The EBITDA trend mirrors this instability, peaking in 2019 before experiencing a severe contraction in 2020.

Growth Trajectory (2017–2019): A consistent upward trend in EBITDA was observed during the first three years of the period. From February 2017 to February 2019, EBITDA increased from 2,720,600 thousand to a peak of 4,959,200 thousand. This period represents the strongest operational performance in the dataset, with a substantial surge occurring between 2018 and 2019.
Operational Contraction and Recovery (2020–2021): A sharp reversal occurred in February 2020, where EBITDA fell into negative territory, reaching -173,300 thousand. This decline was mirrored across all profitability metrics, including EBT and Net Income. However, a strong recovery followed in February 2021, with EBITDA rebounding to 3,233,700 thousand, indicating a restoration of operational capacity, although it remained below 2019 levels.
Recent Performance Trends (2022): The most recent period ending February 2022 shows a secondary decline. EBITDA dropped to 1,009,200 thousand, a decrease of approximately 68% from the previous year. This downward movement suggests a renewed pressure on operational profitability.
Comparative Profitability Analysis: A divergence between operational earnings and bottom-line results is evident in February 2022. While EBITDA remained positive at 1,009,200 thousand, Net Income fell to -40,400 thousand. This gap indicates that depreciation, amortization, interest, and tax expenses exceeded the operational cash flow generated, leading to a net loss despite positive EBITDA.

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Constellation Brands Inc., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	49,045,081)
Earnings before interest, tax, depreciation and amortization (EBITDA)	1,009,200)
Valuation Ratio
EV/EBITDA	48.60
Benchmarks
EV/EBITDA, Competitors¹
Coca-Cola Co.	23.72
Mondelēz International Inc.	19.93
PepsiCo Inc.	15.08
Philip Morris International Inc.	19.81
EV/EBITDA, Sector
Food, Beverage & Tobacco	24.00
EV/EBITDA, Industry
Consumer Staples	25.85

Based on: 10-K (reporting date: 2022-02-28).

¹ Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

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Constellation Brands Inc., historical EV/EBITDA calculation, comparison to benchmarks

	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	58,379,762)	56,550,645)	41,954,208)	53,510,359)	53,800,019)	42,376,898)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	1,009,200)	3,233,700)	(173,300)	4,959,200)	3,061,200)	2,720,600)
Valuation Ratio
EV/EBITDA³	57.85	17.49	—	10.79	17.57	15.58
Benchmarks
EV/EBITDA, Competitors⁴
Coca-Cola Co.	20.83	19.52	—	—	—	—
Mondelēz International Inc.	21.64	15.62	—	—	—	—
PepsiCo Inc.	18.63	18.42	—	—	—	—
Philip Morris International Inc.	14.78	13.64	—	—	—	—
EV/EBITDA, Sector
Food, Beverage & Tobacco	18.49	17.05	—	—	—	—
EV/EBITDA, Industry
Consumer Staples	16.42	15.65	—	—	—	—

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).

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³ 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 58,379,762 ÷ 1,009,200 = 57.85

⁴ Click competitor name to see calculations.

The financial trajectory between February 2017 and February 2022 is characterized by significant volatility in operational earnings contrasted with a general upward trend in enterprise value. This divergence has resulted in unstable valuation multiples, culminating in a substantial spike in the EV/EBITDA ratio by the end of the analyzed period.

Enterprise Value Trends: The enterprise value exhibited a general growth pattern, rising from 42.38 billion USD in 2017 to a peak of 58.38 billion USD in 2022. A temporary contraction was observed in February 2020, where the value declined to 41.95 billion USD, before recovering and continuing an upward trajectory over the subsequent two years.
EBITDA Performance: Operational earnings demonstrated extreme instability. After an initial growth phase that peaked at 4.96 billion USD in 2019, EBITDA collapsed to a negative 173.3 million USD in 2020. A partial recovery followed in 2021, reaching 3.23 billion USD, but earnings fell sharply again in 2022 to 1.01 billion USD.
EV/EBITDA Ratio Analysis: The valuation multiple shifted dramatically in response to the volatility of the underlying earnings. The ratio reached its lowest and most efficient point in 2019 at 10.79. Due to the negative EBITDA in 2020, a ratio was not applicable for that period. While the ratio returned to 17.49 in 2021, it surged to 57.85 in 2022, reflecting a severe misalignment between the increasing enterprise value and the declining operational earnings.

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Constellation Brands Inc. (NYSE:STZ)

Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical