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You are here: Home / Blog / Does Buffett like beer more than Coke?

Does Buffett like beer more than Coke?

April 10, 2025 By Sophocles Sophocleous

Valuation of Constellation Brands (STZ)

I have no idea what beer Warren Buffett drinks, or if he even drinks beer, but Berkshire Hathaway did purchase shares in Constellation Brands ($STZ) in Q4 of 2024. Did the oracle or one of his generals overpay? (We don’t know who actually put this investment on, and it’s only a c0.5% position). Still, it’s interesting to take a look as Berkshire is now a top 10 holder!

c80% of the company’s sales is beer. STZ owns the exclusive U.S. rights to Corona and Modelo through a perpetual brand license acquired in 2013 as part of a $4.8 billion deal with AB InBev.

Market Info

Ticker: STZ
Stock Price (Local): $170.96
52-W High (April 11, 2024): $274.87
52-W Low (February 12, 2025): $160.46
5-Year Beta: 0.79
Avg Volume (3-month, millions): 2.9
Avg Volume (USD, millions): $497.4
Shares outstanding (basic): 181

Enterprise Value

Market Cap (USD, millions): $30,893
Plus: Total Debt $12,120, of which Leases $696
Plus: Minority Interest $254
Less: Cash and ST Investments -$74
EV (USD, millions) $43,193

Key Valuation Metrics

P/E forward: 13x
EV/EBITDA forward: 11.0x
Dividend Yield: 2.4%

Key Persons
President, CEO & Director: Newlands, William
Executive VP & CFO: Hankinson, Garth
Executive VP, Chief Legal Officer & Secretary: Bourdeau, James
Board of Directors, Chairman: Baldwin, Christopher

Top Holders
Vanguard: 10%
Capital: Research and Mgmt 9%
BlackRock: 6%
State Street: 4%
RSS Business Holdings: 3%
Berkshire Hathaway: 3%

Insiders above 1%
Bennett, Abigail J: 2%

Performance

Over the last 5 and 10 years, the stock has grown at a rate below historical EPS. While the 10 year CAGR in EPS was 14%, the stock only rose 4%. Growth slowed in the last 5 years to a 5% CAGR with the stock practically flat.

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Disclaimer

fatalpha.com is not operated by a broker, a dealer, a registered investment adviser, or a regulated entity. Under no circumstances does any information posted represent a recommendation to buy or sell a security. In no event shall fatalpha.com, Sophocles Sophocleous, FATALPHA LTD, or any affiliates or associates be liable to any member or guest for any damages of any kind arising out of the use of any content available on the website. Past performance is a poor indicator of future performance. All the information on this site and any related materials is not intended to be, nor does it constitute investment advice or recommendations. All materials and information you obtain here are exclusively for informational purposes and does not constitute an offer or solicitation to provide any investment services to investors based in the U.S. or elsewhere.

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Sophocles Sophocleous

A Fulbright scholar and Chartered Financial Analyst, has been active in the global financial markets since 1999. This website displays his personal thoughts and views. Read More…

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