Stock fact sheet · data as of
Constellation Brands, Inc. (STZ): fair value, margin of safety and Wheel Score
Consumer Defensive · Beverages - Alcoholic · United States · Defensive
Is STZ undervalued?
At 127.43 (close of 16 Oct 2026), STZ trades 50% below the GLS average fair value of 253.32. That average comes from 8 models run on the latest filings, and 4 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Constellation Brands, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
There is a wide gap between DDM (60.33) and GLS Growth (691.07). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files STZ under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for STZ
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 113.11 | -11% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 237.87 | +87% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 73.66 | -42% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 691.07 | +442% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 297.86 | +134% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 427.27 | +235% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 60.33 | -53% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 125.43 | -2% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -62.10 | -149% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 149.71 | +17% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Constellation Brands, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 4.6/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 8.7%, ROE 20.9%, ROA 7.7% - with debt at 1.39 times equity and a free-cash-flow yield of 8.5%.
The dividend yield is 3.22% at a payout ratio of 37%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Beer 94%, Constellation Wines And Spirits 6% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 8.7% |
|---|---|---|---|
| GLS Moat | 4.6 / 10 | ROE | 20.9% |
| Debt / equity | 1.39 | ROA | 7.7% |
| Free-cash-flow yield | 8.5% | Payout ratio | 37% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 87: Prime
With a Wheel Score of 87, Constellation Brands, Inc. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 16/20, Moat 7/15, Premium 20/20, Stability 19/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 36% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 79,724 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 1.6M shares a day on a market cap of $21.8B, with a beta of 0.43 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 50% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 7 / 15 | moat 4.6/10 | |
| Premium | 20 / 20 | implied volatility 36% | |
| Stability | 19 / 20 | 1.6M shares/day, $21.8B cap, beta 0.43 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 6 Jan 2027, 82 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 30 Oct 2026 (1.03 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Beverages - Alcoholic
The 8 companies below are the closest to Constellation Brands, Inc. by market cap within the Beverages - Alcoholic industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ABEV Ambev S.A. | 3.26 | 9.31 | +65% | 91Prime | $50.7B |
| DEO Diageo plc | 93.96 | 73.48 | -28% | 56Fair | $52.3B |
| TAP Molson Coors Beverage Company | 38.63 | 60.48 | +36% | 45Weak | $7.2B |
| BUD Anheuser-Busch InBev SA/NV | 81.28 | 102.61 | +21% | 83Prime | $160.7B |
| CCU Compañía Cervecerías Unidas S.A. | 10.70 | 2,785.86 | +100% | 74Good | $2.0B |
| SAM The Boston Beer Company, Inc. | 178.14 | 406.72 | +56% | 45Weak | $1.8B |
| NFTN NFiniTi inc. | 6.00 | - | - | 27No options | $191M |
| IPST IP Strategy Holdings, Inc. | 2.34 | - | - | 24No options | $2M |
⚖ Compare STZ with 7 of them All Consumer Defensive stocks →
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about STZ
Is STZ undervalued right now?
By the GLS models, yes: at 127.43 the stock is 50% below the average fair value of 253.32 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of STZ and what does it mean?
STZ scores 87 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for STZ?
253.32 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Constellation Brands, Inc. report earnings next?
The next earnings report is due on 6 Jan 2027, 82 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does STZ have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 79,724 open interest across all expiries and implied volatility of 36% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.