MO Valuation

Altria Group Inc

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61.500

+2.14(3.605%)1D

Overview
Forecast
Valuation
Earnings

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 Undervalued zone, suggesting that its current forward PE ratio of 10.81 is considered Undervalued compared with the five-year average of 9.54. The fair price of Altria Group Inc (MO) is between 59.39 to 67.36 according to relative valuation methord. Compared to the current price of 59.36 USD , Altria Group Inc is Undervalued By 0.05%.

Relative Value

Fair Zone

59.39-67.36

Current Price：59.36

0.05%

Undervalued

11.18

Trailing

Forward

9.58

EV/EBITDA

Altria Group Inc. (MO) has a current EV/EBITDA of 9.58. The 5-year average EV/EBITDA is 8.72. The thresholds are as follows: Strongly Undervalued below 7.48, Undervalued between 7.48 and 8.10, Fairly Valued between 9.34 and 8.10, Overvalued between 9.34 and 9.96, and Strongly Overvalued above 9.96. The current Forward EV/EBITDA of 9.58 falls within the Overvalued range.

9.86

EV/EBIT

Altria Group Inc. (MO) has a current EV/EBIT of 9.86. The 5-year average EV/EBIT is 8.93. The thresholds are as follows: Strongly Undervalued below 7.61, Undervalued between 7.61 and 8.27, Fairly Valued between 9.58 and 8.27, Overvalued between 9.58 and 10.24, and Strongly Overvalued above 10.24. The current Forward EV/EBIT of 9.86 falls within the Overvalued range.

4.98

Altria Group Inc. (MO) has a current PS of 4.98. The 5-year average PS is 4.06. The thresholds are as follows: Strongly Undervalued below 3.21, Undervalued between 3.21 and 3.64, Fairly Valued between 4.48 and 3.64, Overvalued between 4.48 and 4.91, and Strongly Overvalued above 4.91. The current Forward PS of 4.98 falls within the Strongly Overvalued range.

10.78

P/OCF

Altria Group Inc. (MO) has a current P/OCF of 10.78. The 5-year average P/OCF is 10.22. The thresholds are as follows: Strongly Undervalued below 7.60, Undervalued between 7.60 and 8.91, Fairly Valued between 11.54 and 8.91, Overvalued between 11.54 and 12.85, and Strongly Overvalued above 12.85. The current Forward P/OCF of 10.78 falls within the Historic Trend Line -Fairly Valued range.

10.98

P/FCF

Altria Group Inc. (MO) has a current P/FCF of 10.98. The 5-year average P/FCF is 10.40. The thresholds are as follows: Strongly Undervalued below 7.84, Undervalued between 7.84 and 9.12, Fairly Valued between 11.68 and 9.12, Overvalued between 11.68 and 12.96, and Strongly Overvalued above 12.96. The current Forward P/FCF of 10.98 falls within the Historic Trend Line -Fairly Valued range.

Altria Group Inc (MO) has a current Price-to-Book (P/B) ratio of -28.51. Compared to its 3-year average P/B ratio of -24.56 , the current P/B ratio is approximately 16.05% higher. Relative to its 5-year average P/B ratio of -18.04, the current P/B ratio is about 57.99% higher. Altria Group Inc (MO) has a Forward Free Cash Flow (FCF) yield of approximately 8.54%. Compared to its 3-year average FCF yield of 10.05%, the current FCF yield is approximately -14.99% lower. Relative to its 5-year average FCF yield of 9.82% , the current FCF yield is about -13.03% lower.

-29.48

P/B

Median3y

-24.56

Median5y

-18.04

8.45

FCF Yield

Median3y

10.05

Median5y

9.82

Competitors Valuation Multiple

The average P/S ratio for MO's competitors is 4.38, providing a benchmark for relative valuation. Altria Group Inc Corp (MO) exhibits a P/S ratio of 4.98, which is 13.77% above the industry average. Given its robust revenue growth of 0.25%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

British American Tobacco plc

3.36

116.57B

TPB.N

Turning Point Brands Inc

Philip Morris International Inc

5.91

7.10%

252.43B

Performance Decomposition

Market capitalization of MO increased by 25.48% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 6.30 to 10.25.

The secondary factor is the Revenue Growth, contributed 0.25%to the performance.

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

0.25%

5.28B → 5.29B

Revenue Growth

-37.63%

72.07 → 44.95

Margin Expansion

62.86%

6.30 → 10.25

P/E Change

25.48%