Question 1

What is Constellation Brands, Inc.'s WACC?

Accepted Answer

Constellation Brands, Inc. (STZ) has a Weighted Average Cost of Capital (WACC) of 7.39%. This is calculated using a Cost of Equity of 8.55% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 4.14%, with an equity weight of 73.60% in the capital structure.

Question 2

Is Constellation Brands, Inc.'s WACC high or low?

Accepted Answer

Constellation Brands, Inc.'s WACC of 7.39% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Constellation Brands, Inc.'s WACC calculated?

Accepted Answer

Constellation Brands, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.55% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 4.14%. The capital structure is 73.60% equity and 26.40% debt.

Constellation Brands, Inc. (STZ) — WACC 分析

WACC 构成

解读

Constellation Brands, Inc.（STZ）WACC：7.39%

WACC计算器

Constellation Brands, Inc.（STZ） WACC 解读

STZ 公司分析

STZ DCF 估值

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