Is Constellation Brands, Inc. overvalued or undervalued?

As of 9 April 2025, the valuation grade for Constellation Brands, Inc. has moved from expensive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 11, a Price to Book Value of 5.31, and an EV to EBITDA of 11.79. Compared to its peer, which has a P/E of approximately 9.98, Constellation Brands seems to be trading at a premium despite its risky valuation grade.
In terms of performance, Constellation Brands has underperformed relative to the S&P 500 across multiple time frames, with a year-to-date return of -39.81% compared to the S&P 500's 12.22%. This trend continues over longer periods, with a 5-year return of -29.17% versus the S&P 500's 96.61%, reinforcing the notion that the stock may be overvalued given its lackluster performance against the benchmark.