As of June 21, 2025, Constellation Brands Inc (STZ) carries a Weighted Average Cost of Capital (WACC) of 5.7%. WACC reflects the blended rate Constellation Brands Inc must pay to both equity and debt holders.
Within that, the cost of equity is 5.6%, the cost of debt is 4.0%, and the effective tax rate is 26.2%.
Breakdown of WACC Components
What It Means for Investors
With a selected WACC of 5.7%, Constellation Brands Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.