Constellation Brands

Methodology

Constellation Brands' beer import portfolio generates predictable earnings from Modelo and Corona brand strength, though wine and spirits add volatility. Mexican beer operations provide the most visibility. The calculation works well when focusing on the beer business growth and normalizing for wine/spirits portfolio optimization efforts.

Methodology

Constellation typically trades at premium PEG ratios reflecting Modelo Especial's exceptional growth trajectory and pricing power in premium Mexican beer. While expensive versus traditional beverage companies, the brand momentum justifies valuations. Compare to Constellation's historical range and evaluate beer growth sustainability as market share gains mature.

Methodology

Constellation offers a meaningful dividend with steady growth supported by beer business cash generation. The dividend adds value though capital appreciation from Modelo growth matters more. PEGY better reflects total return potential for investors seeking both premium beer growth and dividend income.