Altria Group Inc
Altria Group, Inc. is a holding company. At December 31, 2012, Altria Group, Inc.'s direct and indirect wholly owned subsidiaries included Philip Morris USA Inc. (PM USA), which is engaged in the manufacture and sale of cigarettes and certain smokeless products in the United States; John Middleton Co. (Middleton), which is engaged in the manufacture and sale of machine-made cigars and pipe tobacco, and is a wholly owned subsidiary of PM USA; and UST LLC (UST), which through its direct and indirect wholly owned subsidiaries, including U.S. Smokeless Tobacco Company LLC (USSTC) and Ste. Michelle Wine Estates Ltd. (Ste. Michelle), is engaged in the manufacture and sale of smokeless products and wine. Philip Morris Capital Corporation (PMCC), another wholly owned subsidiary of Altria Group, Inc., maintains a portfolio of leveraged and direct finance leases. In addition, Altria Group, Inc. held approximately 26.9% of the economic and voting interest of SABMiller plc (SABMiller).
Free cash flow has been growing at 3.0% annually.
Current Price
$65.76
+0.43%GoodMoat Value
$92.64
40.9% undervaluedAltria Group Inc (MO) Fair Value
Altria Group Inc — Fair Value
MO · NYSE · Consumer Defensive
GoodMoat Target
“With a reasonable P/E of 15.6 against steady earnings, this tobacco giant offers the margin of safety that prudent investors seek in dividend-paying enterprises.”
— In the voice of Graham
What is the Fair Value?
Estimate fair value using the Graham Number, earnings-based model, and PEG-adjusted valuation. Three independent methods averaged together.
Key Metrics
Market Cap
$110.39B
P/E Ratio
15.89
Forward P/E
—
EPS
$4.12
PEG Ratio
-0.25
Book Value
$-2.09
Dividend Yield
6.30%
Profit Margin
29.84%
ROE
—
Fair Value Estimate
Average Fair Value
$32.07
Upside
-51.2%
Graham Number
√(22.5 × EPS × Book Value)
—
Earnings-Based
Future earnings discounted to present
$51.70
-21.4%
PEG-Adjusted
Fair P/E at PEG ratio of 1.0
$12.44
-81.1%
Adjust Parameters
Altria Group Inc (MO) Fair Value
Estimate fair value using the Graham Number, earnings-based model, and PEG-adjusted valuation. Three independent methods averaged together.
Altria Group Inc is a Consumer Defensive company in the Tobacco industry, listed on NYSE. Current stock price: $65.76. Market capitalization: $110.39B. EPS: $4.12. P/E ratio: 15.89.
GoodMoat Fair Value target: $92.64. The stock appears 40.9% undervalued based on our blended model.
Use GoodMoat's Fair Value alongside other valuation tools including DCF Calculator, Reverse DCF, Fair Value models, and Quality Score to build a comprehensive investment thesis for Altria Group Inc (MO). All tools are free to use and powered by real-time financial data.