Enterprise Value to EBITDA (EV/EBITDA)
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Constellation Brands Inc. pages available for free this week:
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Constellation Brands Inc., EBITDA calculation
US$ in thousands
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).
- Net Income (Loss) attributable to CBI
- The net income exhibits significant volatility during the analyzed period. From 2017 to 2019, there is a robust upward trend, increasing from approximately 1.54 billion to 3.44 billion USD, reflecting strong profitability growth. However, 2020 marks a sharp reversal to a net loss of 11.8 million USD, suggesting considerable operational challenges or extraordinary expenses. In 2021, the company returns to profitability with a net income of roughly 2 billion USD but again experiences a loss in 2022 of 40.4 million USD, indicating instability or adverse circumstances affecting earnings.
- Earnings Before Tax (EBT)
- EBT follows a pattern similar to net income, initially increasing steadily from 2.09 billion USD in 2017 to a peak of 4.15 billion USD in 2019. The year 2020 shows a significant decline to a negative 945 million USD, reflecting pre-tax losses and potentially one of the most challenging operational periods. Partial recovery is observed in 2021 with earnings of 2.54 billion USD, but the subsequent drop to 310 million USD in 2022 indicates weakened profitability and potential challenges in managing expenses or revenue generation.
- Earnings Before Interest and Tax (EBIT)
- The EBIT reveals a similar trajectory as EBT, with growth from 2.43 billion USD in 2017 to 4.51 billion USD in 2019, indicating improved operational efficiency or increased revenue generation. In 2020, a stark decline to a loss of 516.5 million USD demonstrates significant operational difficulties. Although EBIT rebounds to 2.93 billion USD in 2021, the figure falls sharply again to 667 million USD in 2022, underscoring ongoing volatility in operating performance.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA indicates the broadest earnings measure, which also follows an upward trend from 2.72 billion USD in 2017 to a peak of approximately 4.96 billion USD in 2019. There is a dramatic drop to 173.3 million USD in 2020, reflecting a severe impact on earnings before non-cash expenses. A partial recovery to 3.23 billion USD in 2021 is evident but followed by another steep decrease to just over 1 billion USD in 2022, suggesting challenges that persist despite the recovery.
- Overall Summary
- The company experienced progressive growth in profitability from 2017 through 2019 across all examined measures. The onset of 2020 marks a significant downturn, with negative results reported in net income, EBT, and EBIT, as well as a pronounced reduction in EBITDA. This decline may be attributable to market disruptions or internal challenges during that period. The year 2021 shows a marked recovery, particularly in net income and EBITDA; however, the improvement is not sustained into 2022, where profitability diminishes once again. The trends suggest exposure to cyclical or extraordinary factors affecting earnings, with notable instability after the 2019 peak. Continuous monitoring of operational and market conditions is recommended to address the evident volatility in financial performance.
Enterprise Value to EBITDA Ratio, Current
Constellation Brands Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Coca-Cola Co. | |
| Mondelēz International Inc. | |
| PepsiCo Inc. | |
| Philip Morris International Inc. | |
| EV/EBITDA, Sector | |
| Food, Beverage & Tobacco | |
| EV/EBITDA, Industry | |
| Consumer Staples | |
Based on: 10-K (reporting date: 2022-02-28).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Constellation Brands Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | |||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | |||||||
| Valuation Ratio | |||||||
| EV/EBITDA3 | |||||||
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Coca-Cola Co. | |||||||
| Mondelēz International Inc. | |||||||
| PepsiCo Inc. | |||||||
| Philip Morris International Inc. | |||||||
| EV/EBITDA, Sector | |||||||
| Food, Beverage & Tobacco | |||||||
| EV/EBITDA, Industry | |||||||
| Consumer Staples | |||||||
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).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrated a generally increasing trend over the six-year period, starting at approximately 42.38 billion USD in 2017 and reaching nearly 58.38 billion USD in 2022. A notable dip occurred in 2020, with EV declining to roughly 41.95 billion USD, followed by a strong recovery and further growth in the subsequent years.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed significant fluctuations during the period. From 2017 to 2019, it rose considerably from about 2.72 billion USD to nearly 4.96 billion USD, indicating strong operational performance. However, in 2020, EBITDA dropped sharply to a negative figure of approximately -173 million USD, suggesting operational challenges or extraordinary expenses in that year. EBITDA rebounded in 2021 to around 3.23 billion USD but fell again in 2022 to about 1.01 billion USD.
- EV/EBITDA Ratio
- The EV/EBITDA ratio exhibited variability corresponding to the changes in EV and EBITDA. Starting at 15.58 in 2017, this ratio increased to 17.57 in 2018, declined to 10.79 in 2019, and then was not available for 2020 due to negative EBITDA. In 2021, the ratio returned to 17.49, but it surged dramatically to 57.85 in 2022, reflecting the significant decline in EBITDA relative to enterprise value that year.