Is Constellation Brands, Inc. overvalued or undervalued?

As of 9 April 2025, the valuation grade for Constellation Brands, Inc. has moved from very expensive to risky. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 11, an EV to EBITDA of 11.79, and a PEG ratio of 0.12, which indicates strong growth potential relative to its price.
In comparison to its peer, Brown-Forman Corp., which has a P/E ratio of 13.50 and an EV to EBITDA of 12.40, Constellation Brands appears more attractively priced. The company's return on equity (ROE) stands at an impressive 48.91%, further supporting the notion of undervaluation. Despite recent underperformance against the S&P 500, with a year-to-date return of -26.11% compared to the index's 2.44%, the current valuation metrics suggest that Constellation Brands may present a buying opportunity for investors.