Enterprise Value (EV)
Current Enterprise Value (EV)
Constellation Brands Inc., current enterprise value calculation
| Current share price (P) | $208.68 |
| No. shares of common stock outstanding | 184,550,904 |
| US$ in thousands | |
| Common equity (market value)1 | 38,512,083) |
| Add: Preferred Stock, $0.01 par value; Issued, none (per books) | —) |
| Add: Noncontrolling interests (per books) | 315,900) |
| Total equity | 38,827,983) |
| Add: Short-term borrowings (per books) | 323,000) |
| Add: Current maturities of long-term debt (per books) | 605,300) |
| Add: Long-term debt, less current maturities (per books) | 9,488,200) |
| Total equity and debt | 49,244,483) |
| Less: Cash and cash equivalents | 199,400) |
| Enterprise value (EV) | 49,045,083) |
Based on: 10-K (reporting date: 2022-02-28).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 208.68 × 184,550,904
Historical Enterprise Value (EV)
Constellation Brands Inc., EV calculation
Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Constellation Brands Inc. Annual Report.
3 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 254.21 × 188,217,466
The Enterprise Value (EV) exhibits significant volatility over the six-year period, characterized by initial growth, a sharp contraction in 2020, and a subsequent recovery to peak levels by 2022.
- Enterprise Value Trajectory
- The EV increased from 42.4 billion US$ in 2017 to 53.8 billion US$ in 2018. Following a period of relative stability in 2019, a notable decline occurred, bringing the EV down to 42.0 billion US$ by February 2020. A strong recovery followed, with the EV rising to 56.6 billion US$ in 2021 and reaching a period high of 58.4 billion US$ in 2022.
- Correlation with Market Equity
- A strong positive correlation is observed between the market value of common equity and the overall Enterprise Value. The decline in common equity from 43.7 billion US$ in 2018 to 29.5 billion US$ in 2020 mirrors the corresponding drop in EV, suggesting that fluctuations in equity market capitalization are the primary drivers of the total enterprise valuation.
- Capital Structure Relationship
- The Enterprise Value closely tracks the sum of total equity and debt throughout the analyzed period. The minimal variance between these two figures suggests that the net debt component remains the primary additive to the equity value, and that cash reserves or other offsets are relatively small compared to the total capital structure.
- Valuation Recovery Analysis
- The period between February 2020 and February 2022 represents a significant valuation expansion. The Enterprise Value grew by approximately 39% during this interval, rising from 42.0 billion US$ to 58.4 billion US$. This growth was predominantly fueled by a recovery in common equity market value, which increased from 29.5 billion US$ to 47.8 billion US$ in the same timeframe.
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