Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Constellation Brands Inc., current price multiples
| Constellation Brands Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | Food, Beverage & Tobacco | Consumer Staples | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $208.68 | |||||||||
| No. shares of common stock outstanding | 184,550,904 | |||||||||
| Earnings per share (EPS) | $-0.22 | |||||||||
| Operating profit per share | $12.63 | |||||||||
| Sales per share | $47.80 | |||||||||
| Book value per share (BVPS) | $63.57 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to operating profit (P/OP) | 16.52 | 29.95 | 24.04 | 16.88 | 22.11 | 26.72 | 30.11 | |||
| Price to sales (P/S) | 4.37 | 8.60 | 2.21 | 2.07 | 8.10 | 5.30 | 2.54 | |||
| Price to book value (P/BV) | 3.28 | 12.81 | 3.30 | 9.51 | — | 17.25 | 13.35 | |||
Based on: 10-K (reporting date: 2022-02-28).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Constellation Brands Inc., historical price multiples
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 valuation multiples exhibit a period of contraction between 2018 and 2020, followed by a recovery phase through 2022. This pattern suggests a cycle of market revaluation, with several key ratios reaching troughs in 2020 before returning to or exceeding historical levels.
- Price to Earnings (P/E)
- The P/E ratio demonstrated significant volatility, declining from 21.71 in 2017 to a low of 11.55 in 2019. A subsequent increase to 23.14 in 2021 indicates a sharp expansion in the earnings multiple after a period of compression.
- Price to Operating Profit (P/OP)
- The P/OP ratio shows a general upward trend over the observed period. After fluctuating between 13.70 and 19.12 from 2017 to 2020, the ratio climbed to a peak of 20.52 by February 28, 2022, indicating an increasing premium placed on operating profitability.
- Price to Sales (P/S)
- The P/S ratio experienced a decline from a high of 5.76 in 2018 to a minimum of 3.54 in 2020. By 2022, the ratio recovered to 5.42, signaling a return to valuation levels consistent with the 2018-2019 period.
- Price to Book Value (P/BV)
- A marked downward trend in the P/BV ratio occurred between 2018 and 2020, falling from 5.43 to 2.43. Following this trough, a consistent recovery was observed, with the ratio rising to 4.08 by 2022.
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Price to Earnings (P/E)
Constellation Brands Inc., historical P/E calculation, comparison to benchmarks
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 188,217,466 | 194,027,715 | 192,840,856 | 191,349,811 | 191,391,478 | 194,800,645 | |
| Selected Financial Data (US$) | |||||||
| Net income (loss) attributable to CBI (in thousands) | (40,400) | 1,998,000) | (11,800) | 3,435,900) | 2,318,900) | 1,535,100) | |
| Earnings per share (EPS)2 | -0.21 | 10.30 | -0.06 | 17.96 | 12.12 | 7.88 | |
| Share price1, 3 | 254.21 | 238.31 | 153.02 | 207.48 | 228.26 | 171.06 | |
| Valuation Ratio | |||||||
| P/E ratio4 | — | 23.14 | — | 11.55 | 18.84 | 21.71 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Coca-Cola Co. | 27.12 | 27.63 | — | — | — | — | |
| Mondelēz International Inc. | 33.07 | 21.64 | — | — | — | — | |
| PepsiCo Inc. | 26.71 | 30.58 | — | — | — | — | |
| Philip Morris International Inc. | 17.54 | 18.37 | — | — | — | — | |
| P/E Ratio, Sector | |||||||
| Food, Beverage & Tobacco | 24.66 | 24.78 | — | — | — | — | |
| P/E Ratio, Industry | |||||||
| Consumer Staples | 25.35 | 26.07 | — | — | — | — | |
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 2022 Calculation
EPS = Net income (loss) attributable to CBI ÷ No. shares of common stock outstanding
= -40,400,000 ÷ 188,217,466 = -0.21
3 Closing price as at the filing date of Constellation Brands Inc. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 254.21 ÷ -0.21 = —
5 Click competitor name to see calculations.
The valuation metrics for the period between February 2017 and February 2022 exhibit significant volatility in both earnings performance and market valuation multiples.
- Price-to-Earnings (P/E) Ratio Trends
- A contraction in the P/E ratio occurred between 2017 and 2019, decreasing from 21.71 to 11.55. This indicates a period where earnings growth outpaced the increase in share price. This trend reversed by 2021, when the P/E ratio expanded to 23.14, representing the highest multiple observed in the analyzed period.
- Earnings Per Share (EPS) Volatility
- Earnings per share demonstrated an initial growth phase, peaking at 17.96 in 2019. Subsequent years were characterized by instability, with earnings falling to negative values in February 2020 (-0.06) and February 2022 (-0.21). The absence of P/E ratios for these specific years is a direct result of the negative earnings reported.
- Share Price Correlation
- The share price exhibited a non-linear relationship with earnings. Although the price reached a period low of 153.02 in 2020 during a period of negative earnings, it climbed to a peak of 254.21 by February 2022 despite a return to negative earnings. This divergence suggests that market valuation in the final year was influenced by expectations or factors beyond immediate annual profitability.
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Price to Operating Profit (P/OP)
Constellation Brands Inc., historical P/OP calculation, comparison to benchmarks
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 188,217,466 | 194,027,715 | 192,840,856 | 191,349,811 | 191,391,478 | 194,800,645 | |
| Selected Financial Data (US$) | |||||||
| Operating income (in thousands) | 2,331,700) | 2,791,100) | 2,154,500) | 2,412,200) | 2,284,500) | 2,399,400) | |
| Operating profit per share2 | 12.39 | 14.39 | 11.17 | 12.61 | 11.94 | 12.32 | |
| Share price1, 3 | 254.21 | 238.31 | 153.02 | 207.48 | 228.26 | 171.06 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 20.52 | 16.57 | 13.70 | 16.46 | 19.12 | 13.89 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Coca-Cola Co. | 23.72 | 26.19 | — | — | — | — | |
| Mondelēz International Inc. | 25.43 | 20.00 | — | — | — | — | |
| PepsiCo Inc. | 20.67 | 20.87 | — | — | — | — | |
| Philip Morris International Inc. | 12.96 | 12.90 | — | — | — | — | |
| P/OP Ratio, Sector | |||||||
| Food, Beverage & Tobacco | 19.51 | 19.52 | — | — | — | — | |
| P/OP Ratio, Industry | |||||||
| Consumer Staples | 18.28 | 19.01 | — | — | — | — | |
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 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 2,331,700,000 ÷ 188,217,466 = 12.39
3 Closing price as at the filing date of Constellation Brands Inc. Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 254.21 ÷ 12.39 = 20.52
5 Click competitor name to see calculations.
The valuation of common stock based on the Price to Operating Profit (P/OP) ratio demonstrates a pattern of volatility between 2017 and 2022, with the multiple fluctuating between a low of 13.70 and a high of 20.52. The fluctuations in this ratio appear to be driven more by changes in share price than by changes in underlying operating profitability.
- Share Price Trends
- The share price followed a general upward trajectory, increasing from 171.06 in February 2017 to 254.21 by February 2022. A significant temporary contraction is observed in February 2020, when the price declined to 153.02, prior to a strong recovery over the following two years.
- Operating Profit per Share Performance
- Operating profit per share remained relatively stable over the six-year period, fluctuating within a narrow range between 11.17 and 14.39. A peak in operational efficiency per share was recorded in February 2021 at 14.39, followed by a decrease to 12.39 in February 2022.
- P/OP Ratio Analysis
- The P/OP ratio exhibits non-linear movement, reflecting shifting market sentiment. The lowest multiple of 13.70 occurred in February 2020, coinciding with the period's lowest share price. The highest multiple of 20.52 was reached in February 2022. This peak is notable because it occurred despite a decrease in operating profit per share from the previous year, indicating that the valuation expansion was driven entirely by the increase in share price.
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Price to Sales (P/S)
Constellation Brands Inc., historical P/S calculation, comparison to benchmarks
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 188,217,466 | 194,027,715 | 192,840,856 | 191,349,811 | 191,391,478 | 194,800,645 | |
| Selected Financial Data (US$) | |||||||
| Net sales (in thousands) | 8,820,700) | 8,614,900) | 8,343,500) | 8,116,000) | 7,585,000) | 7,331,500) | |
| Sales per share2 | 46.86 | 44.40 | 43.27 | 42.41 | 39.63 | 37.64 | |
| Share price1, 3 | 254.21 | 238.31 | 153.02 | 207.48 | 228.26 | 171.06 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 5.42 | 5.37 | 3.54 | 4.89 | 5.76 | 4.55 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Coca-Cola Co. | 6.02 | 6.99 | — | — | — | — | |
| Mondelēz International Inc. | 2.85 | 3.24 | — | — | — | — | |
| PepsiCo Inc. | 2.75 | 2.93 | — | — | — | — | |
| Philip Morris International Inc. | 5.00 | 5.33 | — | — | — | — | |
| P/S Ratio, Sector | |||||||
| Food, Beverage & Tobacco | 3.87 | 4.28 | — | — | — | — | |
| P/S Ratio, Industry | |||||||
| Consumer Staples | 1.54 | 1.61 | — | — | — | — | |
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 2022 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 8,820,700,000 ÷ 188,217,466 = 46.86
3 Closing price as at the filing date of Constellation Brands Inc. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 254.21 ÷ 46.86 = 5.42
5 Click competitor name to see calculations.
The financial data from February 2017 through February 2022 indicates a period of significant share price volatility contrasted by a consistent and linear growth in revenue generation per share.
- Sales per Share Performance
- A steady upward trend is observed in sales per share, which increased every year from 37.64 US$ in 2017 to 46.86 US$ in 2022. This consistent growth suggests a stable expansion of the underlying business operations and revenue capacity over the analyzed period.
- Share Price Volatility
- The share price experienced substantial fluctuations, starting at 171.06 US$ in 2017 and reaching a peak of 254.21 US$ by 2022. A significant contraction is noted in February 2020, where the price dropped to 153.02 US$, followed by a strong recovery in 2021 and 2022.
- Price to Sales (P/S) Ratio Analysis
- The P/S ratio mirrored the volatility of the share price rather than the steady growth of sales. The ratio peaked at 5.76 in 2018 and reached a period low of 3.54 in 2020. The decline observed in 2020 was driven exclusively by the decrease in share price, as sales per share continued to rise during that timeframe. By February 2022, the P/S ratio returned to a higher valuation level of 5.42, reflecting an increased market premium relative to the company's sales.
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Price to Book Value (P/BV)
Constellation Brands Inc., historical P/BV calculation, comparison to benchmarks
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 188,217,466 | 194,027,715 | 192,840,856 | 191,349,811 | 191,391,478 | 194,800,645 | |
| Selected Financial Data (US$) | |||||||
| Total CBI stockholders’ equity (in thousands) | 11,731,900) | 13,598,900) | 12,131,800) | 12,551,000) | 8,046,100) | 6,891,200) | |
| Book value per share (BVPS)2 | 62.33 | 70.09 | 62.91 | 65.59 | 42.04 | 35.38 | |
| Share price1, 3 | 254.21 | 238.31 | 153.02 | 207.48 | 228.26 | 171.06 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 4.08 | 3.40 | 2.43 | 3.16 | 5.43 | 4.84 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Coca-Cola Co. | 10.73 | 11.74 | — | — | — | — | |
| Mondelēz International Inc. | 3.34 | 3.29 | — | — | — | — | |
| PepsiCo Inc. | 13.88 | 14.52 | — | — | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | — | |
| P/BV Ratio, Sector | |||||||
| Food, Beverage & Tobacco | 12.59 | 13.34 | — | — | — | — | |
| P/BV Ratio, Industry | |||||||
| Consumer Staples | 8.11 | 8.15 | — | — | — | — | |
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 2022 Calculation
BVPS = Total CBI stockholders’ equity ÷ No. shares of common stock outstanding
= 11,731,900,000 ÷ 188,217,466 = 62.33
3 Closing price as at the filing date of Constellation Brands Inc. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 254.21 ÷ 62.33 = 4.08
5 Click competitor name to see calculations.
The Price to Book Value (P/BV) ratio experienced a period of significant volatility and cyclical movement from 2017 to 2022, reflecting shifting market valuations relative to the company's accounting equity.
- Price to Book Value Trend
- The P/BV ratio reached a peak of 5.43 in February 2018, followed by a sustained contraction that culminated in a low of 2.43 in February 2020. This decline indicates a period where the market premium attributed to the company's book value diminished. A recovery phase ensued from 2021 onward, with the ratio ascending to 3.40 and further increasing to 4.08 by February 2022.
- Book Value Per Share (BVPS) Dynamics
- The book value per share showed a general upward trajectory for the majority of the period, rising from 35.38 in 2017 to a peak of 70.09 in 2021. A moderate reduction was observed in the final year, with the value retreating to 62.33 in February 2022. The rapid expansion of BVPS between 2018 and 2019 acted as a primary driver in the compression of the P/BV ratio during that timeframe.
- Correlation Between Market Price and Valuation
- The fluctuations in the P/BV ratio were driven by the interplay between share price volatility and the growth of net assets. The sharp contraction in the ratio during 2020 was closely linked to the decline in share price to 153.02. The subsequent recovery in the P/BV ratio through 2022 was supported by a strong rebound in the share price, which climbed to 254.21, thereby expanding the market multiple over the book value.
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