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Estimated Discount To Fair Value: 35.3%

Eli Lilly is trading at US$757.39, significantly below its estimated fair value of US$1,171.10, suggesting undervaluation based on cash flows. The company's earnings grew by 80.9% last year and are expected to continue growing at 22.5% annually, outpacing the broader U.S. market forecast of 14.3%. Eli Lilly's recent clinical trial successes with Zepbound and strategic collaborations in RNA-targeted therapies further bolster its growth prospects despite a high debt level and revised lower EPS guidance for 2025.

• In light of our recent growth report, it seems possible that Eli Lilly's financial performance will exceed current levels.

• Dive into the specifics of Eli Lilly here with our thorough financial health report.

Constellation Brands

Overview: Constellation Brands, Inc. is a company that produces, imports, markets, and sells beer, wine, and spirits across the United States, Canada, Mexico, New Zealand, and Italy with a market cap of approximately $34.82 billion.

Operations: The company's revenue is primarily derived from its beer segment, which accounts for $8.54 billion, followed by the wine and spirits segment at $1.67 billion.

Estimated Discount To Fair Value: 49.2%

Constellation Brands, trading at US$195.62, is significantly undervalued based on cash flows with an estimated fair value of US$385.37. Despite high debt levels, the company is expected to achieve profitability within three years and has a strong projected earnings growth of 25.86% annually. Recent financial maneuvers include a US$500 million term loan for corporate purposes and a share buyback program worth up to US$4 billion, reflecting strategic capital management amidst slower revenue growth forecasts than the U.S. market average.

• Our comprehensive growth report raises the possibility that Constellation Brands is poised for substantial financial growth.

• Navigate through the intricacies of Constellation Brands with our comprehensive financial health report here.

Next Steps

• Delve into our full catalog of 173 Undervalued US Stocks Based On Cash Flows here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:KD NYSE:LLY and NYSE:STZ.

This article was originally published by Simply Wall St.

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