Constellation Brands Inc., FCFF calculation

US$ in thousands

12 months ended:	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
Net income (loss) attributable to CBI	(40,400)	1,998,000)	(11,800)	3,435,900)	2,318,900)	1,535,100)
Net income attributable to noncontrolling interests	41,400)	33,800)	33,200)	23,200)	11,900)	4,100)
Net noncash charges	2,890,000)	626,400)	2,613,400)	(975,300)	(71,200)	190,700)
Change in operating assets and liabilities, net of effects from purchase and sale of business	(185,600)	148,300)	(83,700)	(237,500)	(328,200)	(33,900)
Net cash provided by operating activities	2,705,400)	2,806,500)	2,551,100)	2,246,300)	1,931,400)	1,696,000)
Interest, net of interest capitalized, net of tax¹	1,106)	334,382)	354,631)	271,208)	320,589)	220,794)
Capitalized interest costs, net of tax²	76)	25,169)	29,388)	19,289)	17,313)	—)
Purchase of property, plant, and equipment	(1,026,800)	(864,600)	(726,500)	(886,300)	(1,057,600)	(907,400)
Free cash flow to the firm (FCFF)	1,679,781)	2,301,450)	2,208,619)	1,650,497)	1,211,702)	1,009,394)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Constellation Brands Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Constellation Brands Inc. FCFF increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Constellation Brands Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
Effective Income Tax Rate (EITR)
EITR¹	99.70%	20.10%	21.00%	16.50%	0.50%	26.50%
Interest Paid, Net of Tax
Interest, net of interest capitalized, before tax	368,500)	418,500)	448,900)	324,800)	322,200)	300,400)
Less: Interest, net of interest capitalized, tax²	367,395)	84,119)	94,269)	53,592)	1,611)	79,606)
Interest, net of interest capitalized, net of tax	1,106)	334,382)	354,631)	271,208)	320,589)	220,794)
Interest Costs Capitalized, Net of Tax
Capitalized interest costs, before tax	25,300)	31,500)	37,200)	23,100)	17,400)	—)
Less: Capitalized interest costs, tax³	25,224)	6,332)	7,812)	3,812)	87)	—)
Capitalized interest costs, net of tax	76)	25,169)	29,388)	19,289)	17,313)	—)

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).

¹ See details »

² 2022 Calculation
Interest, net of interest capitalized, tax = Interest, net of interest capitalized × EITR
= 368,500 × 99.70% = 367,395

³ 2022 Calculation
Capitalized interest costs, tax = Capitalized interest costs × EITR
= 25,300 × 99.70% = 25,224

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Constellation Brands Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	49,045,081)
Free cash flow to the firm (FCFF)	1,679,781)
Valuation Ratio
EV/FCFF	29.20
Benchmarks
EV/FCFF, Competitors¹
Altria Group Inc.	11.55
Coca-Cola Co.	27.69
PepsiCo Inc.	28.14
Philip Morris International Inc.	27.06
EV/FCFF, Sector
Food, Beverage & Tobacco	25.24
EV/FCFF, Industry
Consumer Staples	34.39

Based on: 10-K (reporting date: 2022-02-28).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Constellation Brands Inc., historical EV/FCFF 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	58,379,762)	56,550,645)	41,954,208)	53,510,359)	53,800,019)	42,376,898)
Free cash flow to the firm (FCFF)²	1,679,781)	2,301,450)	2,208,619)	1,650,497)	1,211,702)	1,009,394)
Valuation Ratio
EV/FCFF³	34.75	24.57	19.00	32.42	44.40	41.98
Benchmarks
EV/FCFF, Competitors⁴
Altria Group Inc.	11.86	13.00	11.79	12.41	—	—
Coca-Cola Co.	27.95	25.28	26.04	28.08	—	—
PepsiCo Inc.	40.39	33.08	30.09	35.72	—	—
Philip Morris International Inc.	19.53	16.35	16.31	16.47	—	—
EV/FCFF, Sector
Food, Beverage & Tobacco	23.90	21.47	20.59	22.56	—	—
EV/FCFF, Industry
Consumer Staples	27.96	19.75	21.80	22.08	—	—

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).

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² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 58,379,762 ÷ 1,679,781 = 34.75

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Constellation Brands Inc. EV/FCFF ratio increased from 2020 to 2021 and from 2021 to 2022.

Constellation Brands Inc. (NYSE:STZ)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical