Strategic Winery Tourism and Management

248 Strategic Winery Tourism and Management

benchmarks. First, we compare Constellation’s financial ratios to the

industry benchmarks and find that Constellation has relatively high

debt service combined with low profitability ratios, perhaps making the

common stocks of Constellation less attractive to the investors. Second,

we apply four valuation techniques: dividend growth, free cash flow,

earnings, and relative value (multiples) models for Constellation’s com-

mon stock (STZ), and find that it is undervalued in 2013. This finding is

consistent with the analyst recommendations of mostly “buy” and some

“hold” decisions for STZ.

14.1 CONSTELLATIONS BRANDS IN THE WINERIES AND

DISTILLERS INDUSTRY

Constellations Brands Inc. is a leading wine company ...