MO PE Ratio & Valuation,Is MO Overvalued

MO Relative Valuation

MO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MO is overvalued; if below, it's undervalued.

Historical Valuation

Altria Group Inc (MO) is now in the Fair zone, suggesting that its current forward PE ratio of 10.62 is considered Fairly compared with the five-year average of 9.71. The fair price of Altria Group Inc (MO) is between 57.26 to 66.41 according to relative valuation methord.

Relative Value

Fair Zone

57.26-66.41

Current Price：59.19

Fair

10.62

9.46

EV/EBITDA

Altria Group Inc. (MO) has a current EV/EBITDA of 9.46. The 5-year average EV/EBITDA is 8.84. The thresholds are as follows: Strongly Undervalued below 7.40, Undervalued between 7.40 and 8.12, Fairly Valued between 9.56 and 8.12, Overvalued between 9.56 and 10.28, and Strongly Overvalued above 10.28. The current Forward EV/EBITDA of 9.46 falls within the Historic Trend Line -Fairly Valued range.

9.66

EV/EBIT

Altria Group Inc. (MO) has a current EV/EBIT of 9.66. The 5-year average EV/EBIT is 9.05. The thresholds are as follows: Strongly Undervalued below 7.55, Undervalued between 7.55 and 8.30, Fairly Valued between 9.80 and 8.30, Overvalued between 9.80 and 10.55, and Strongly Overvalued above 10.55. The current Forward EV/EBIT of 9.66 falls within the Historic Trend Line -Fairly Valued range.

4.90

Altria Group Inc. (MO) has a current PS of 4.90. The 5-year average PS is 4.18. The thresholds are as follows: Strongly Undervalued below 3.17, Undervalued between 3.17 and 3.67, Fairly Valued between 4.69 and 3.67, Overvalued between 4.69 and 5.20, and Strongly Overvalued above 5.20. The current Forward PS of 4.90 falls within the Overvalued range.

10.95

P/OCF

Altria Group Inc. (MO) has a current P/OCF of 10.95. The 5-year average P/OCF is 10.39. The thresholds are as follows: Strongly Undervalued below 7.70, Undervalued between 7.70 and 9.05, Fairly Valued between 11.73 and 9.05, Overvalued between 11.73 and 13.08, and Strongly Overvalued above 13.08. The current Forward P/OCF of 10.95 falls within the Historic Trend Line -Fairly Valued range.

11.54

P/FCF

Altria Group Inc. (MO) has a current P/FCF of 11.54. The 5-year average P/FCF is 10.62. The thresholds are as follows: Strongly Undervalued below 8.01, Undervalued between 8.01 and 9.31, Fairly Valued between 11.92 and 9.31, Overvalued between 11.92 and 13.23, and Strongly Overvalued above 13.23. The current Forward P/FCF of 11.54 falls within the Historic Trend Line -Fairly Valued range.

Altria Group Inc (MO) has a current Price-to-Book (P/B) ratio of -37.28. Compared to its 3-year average P/B ratio of -26.03 , the current P/B ratio is approximately 43.22% higher. Relative to its 5-year average P/B ratio of -22.30, the current P/B ratio is about 67.14% higher. Altria Group Inc (MO) has a Forward Free Cash Flow (FCF) yield of approximately 9.32%. Compared to its 3-year average FCF yield of 9.86%, the current FCF yield is approximately -5.49% lower. Relative to its 5-year average FCF yield of 9.57% , the current FCF yield is about -2.64% lower.

-37.28

P/B

Median3y

-26.03

Median5y

-22.30

9.32

FCF Yield

Median3y

9.86

Median5y

9.57

Competitors Valuation Multiple

The average P/S ratio for MO's competitors is 4.50, providing a benchmark for relative valuation. Altria Group Inc Corp (MO) exhibits a P/S ratio of 4.90, which is 8.99% above the industry average. Given its robust revenue growth of -1.74%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MO increased by 16.60% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.92 to 11.21.

The secondary factor is the Margin Expansion, contributed 5.41%to the performance.

Overall, the performance of MO in the past 1 year is driven by P/E Change. Which is more unsustainable.

-1.74%

5.34B → 5.25B

Revenue Growth

5.41%

42.91 → 45.23

Margin Expansion

12.93%

9.92 → 11.21

P/E Change

16.60%

50.38 → 58.75

Mkt Cap Growth

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Frequently Asked Questions

Is Altria Group Inc (MO) currently overvalued or undervalued?

What is Altria Group Inc (MO) fair value?

MO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Altria Group Inc (MO) is between 57.26 to 66.41 according to relative valuation methord.

How does MO's valuation metrics compare to the industry average?

What is the current P/B ratio for Altria Group Inc (MO) as of Dec 15 2025?

As of Dec 15 2025, Altria Group Inc (MO) has a P/B ratio of -37.28. This indicates that the market values MO at -37.28 times its book value.

What is the current FCF Yield for Altria Group Inc (MO) as of Dec 15 2025?

As of Dec 15 2025, Altria Group Inc (MO) has a FCF Yield of 9.32%. This means that for every dollar of Altria Group Inc’s market capitalization, the company generates 9.32 cents in free cash flow.

What is the current Forward P/E ratio for Altria Group Inc (MO) as of Dec 15 2025?

As of Dec 15 2025, Altria Group Inc (MO) has a Forward P/E ratio of 10.62. This means the market is willing to pay $10.62 for every dollar of Altria Group Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Altria Group Inc (MO) as of Dec 15 2025?

As of Dec 15 2025, Altria Group Inc (MO) has a Forward P/S ratio of 4.90. This means the market is valuing MO at $4.90 for every dollar of expected revenue over the next 12 months.

MO Valuation