Intrinsic value of Altria Group - MO

Previous Close

$43.85

  Intrinsic Value

$40.24

stock screener

  Rating & Target

hold

-8%

Previous close

$43.85

 
Intrinsic value

$40.24

 
Up/down potential

-8%

 
Rating

hold

We calculate the intrinsic value of MO stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 82.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  25,871
  26,466
  27,147
  27,910
  28,756
  29,685
  30,696
  31,790
  32,969
  34,234
  35,588
  37,032
  38,570
  40,204
  41,939
  43,777
  45,722
  47,779
  49,953
  52,248
  54,670
  57,224
  59,917
  62,753
  65,741
  68,886
  72,197
  75,681
  79,346
  83,201
Variable operating expenses, $m
  16,135
  16,466
  16,844
  17,268
  17,739
  18,255
  18,817
  19,426
  20,082
  20,785
  19,791
  20,594
  21,449
  22,358
  23,322
  24,344
  25,426
  26,570
  27,779
  29,056
  30,402
  31,823
  33,320
  34,897
  36,559
  38,308
  40,149
  42,086
  44,124
  46,268
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  16,135
  16,466
  16,844
  17,268
  17,739
  18,255
  18,817
  19,426
  20,082
  20,785
  19,791
  20,594
  21,449
  22,358
  23,322
  24,344
  25,426
  26,570
  27,779
  29,056
  30,402
  31,823
  33,320
  34,897
  36,559
  38,308
  40,149
  42,086
  44,124
  46,268
Operating income, $m
  9,737
  10,001
  10,303
  10,642
  11,017
  11,429
  11,878
  12,364
  12,887
  13,449
  15,797
  16,438
  17,121
  17,847
  18,616
  19,432
  20,296
  21,209
  22,174
  23,193
  24,268
  25,402
  26,597
  27,856
  29,182
  30,578
  32,048
  33,594
  35,221
  36,933
EBITDA, $m
  11,849
  12,121
  12,433
  12,783
  13,170
  13,595
  14,059
  14,560
  15,100
  15,679
  16,299
  16,961
  17,665
  18,413
  19,208
  20,050
  20,941
  21,883
  22,878
  23,930
  25,039
  26,209
  27,442
  28,741
  30,109
  31,550
  33,066
  34,661
  36,340
  38,106
Interest expense (income), $m
  775
  1,390
  1,433
  1,485
  1,544
  1,610
  1,684
  1,765
  1,852
  1,948
  2,050
  2,160
  2,278
  2,403
  2,537
  2,679
  2,830
  2,989
  3,159
  3,337
  3,526
  3,726
  3,936
  4,158
  4,392
  4,639
  4,899
  5,172
  5,460
  5,763
  6,081
Earnings before tax, $m
  8,346
  8,568
  8,818
  9,098
  9,407
  9,746
  10,114
  10,512
  10,940
  11,399
  13,637
  14,161
  14,718
  15,310
  15,938
  16,603
  17,306
  18,051
  18,837
  19,667
  20,542
  21,465
  22,438
  23,464
  24,543
  25,680
  26,876
  28,135
  29,459
  30,852
Tax expense, $m
  2,254
  2,313
  2,381
  2,456
  2,540
  2,631
  2,731
  2,838
  2,954
  3,078
  3,682
  3,823
  3,974
  4,134
  4,303
  4,483
  4,673
  4,874
  5,086
  5,310
  5,546
  5,796
  6,058
  6,335
  6,627
  6,934
  7,257
  7,596
  7,954
  8,330
Net income, $m
  6,093
  6,254
  6,437
  6,641
  6,867
  7,114
  7,383
  7,673
  7,986
  8,321
  9,955
  10,337
  10,744
  11,176
  11,634
  12,120
  12,634
  13,177
  13,751
  14,357
  14,996
  15,670
  16,380
  17,128
  17,916
  18,746
  19,619
  20,538
  21,505
  22,522

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  56,735
  58,040
  59,532
  61,206
  63,062
  65,098
  67,315
  69,715
  72,300
  75,075
  78,043
  81,211
  84,583
  88,168
  91,971
  96,001
  100,268
  104,779
  109,547
  114,580
  119,891
  125,492
  131,396
  137,616
  144,168
  151,066
  158,326
  165,966
  174,004
  182,458
Adjusted assets (=assets-cash), $m
  56,735
  58,040
  59,532
  61,206
  63,062
  65,098
  67,315
  69,715
  72,300
  75,075
  78,043
  81,211
  84,583
  88,168
  91,971
  96,001
  100,268
  104,779
  109,547
  114,580
  119,891
  125,492
  131,396
  137,616
  144,168
  151,066
  158,326
  165,966
  174,004
  182,458
Revenue / Adjusted assets
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
  0.456
Average production assets, $m
  10,944
  11,195
  11,483
  11,806
  12,164
  12,557
  12,984
  13,447
  13,946
  14,481
  15,054
  15,665
  16,315
  17,006
  17,740
  18,517
  19,340
  20,211
  21,130
  22,101
  23,126
  24,206
  25,345
  26,545
  27,808
  29,139
  30,539
  32,013
  33,563
  35,194
Working capital, $m
  -4,476
  -4,579
  -4,696
  -4,828
  -4,975
  -5,135
  -5,310
  -5,500
  -5,704
  -5,923
  -6,157
  -6,407
  -6,673
  -6,955
  -7,255
  -7,573
  -7,910
  -8,266
  -8,642
  -9,039
  -9,458
  -9,900
  -10,366
  -10,856
  -11,373
  -11,917
  -12,490
  -13,093
  -13,727
  -14,394
Total debt, $m
  26,539
  27,496
  28,591
  29,821
  31,183
  32,677
  34,304
  36,066
  37,963
  40,000
  42,179
  44,504
  46,979
  49,610
  52,402
  55,360
  58,491
  61,803
  65,302
  68,997
  72,895
  77,006
  81,340
  85,905
  90,714
  95,777
  101,106
  106,714
  112,614
  118,819
Total liabilities, $m
  41,644
  42,601
  43,696
  44,926
  46,288
  47,782
  49,409
  51,171
  53,068
  55,105
  57,284
  59,609
  62,084
  64,715
  67,507
  70,465
  73,596
  76,908
  80,407
  84,102
  88,000
  92,111
  96,445
  101,010
  105,819
  110,882
  116,211
  121,819
  127,719
  133,924
Total equity, $m
  15,092
  15,439
  15,835
  16,281
  16,775
  17,316
  17,906
  18,544
  19,232
  19,970
  20,760
  21,602
  22,499
  23,453
  24,464
  25,536
  26,671
  27,871
  29,139
  30,478
  31,891
  33,381
  34,951
  36,606
  38,349
  40,183
  42,115
  44,147
  46,285
  48,534
Total liabilities and equity, $m
  56,736
  58,040
  59,531
  61,207
  63,063
  65,098
  67,315
  69,715
  72,300
  75,075
  78,044
  81,211
  84,583
  88,168
  91,971
  96,001
  100,267
  104,779
  109,546
  114,580
  119,891
  125,492
  131,396
  137,616
  144,168
  151,065
  158,326
  165,966
  174,004
  182,458
Debt-to-equity ratio
  1.760
  1.780
  1.810
  1.830
  1.860
  1.890
  1.920
  1.940
  1.970
  2.000
  2.030
  2.060
  2.090
  2.120
  2.140
  2.170
  2.190
  2.220
  2.240
  2.260
  2.290
  2.310
  2.330
  2.350
  2.370
  2.380
  2.400
  2.420
  2.430
  2.450
Adjusted equity ratio
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266
  0.266

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  6,093
  6,254
  6,437
  6,641
  6,867
  7,114
  7,383
  7,673
  7,986
  8,321
  9,955
  10,337
  10,744
  11,176
  11,634
  12,120
  12,634
  13,177
  13,751
  14,357
  14,996
  15,670
  16,380
  17,128
  17,916
  18,746
  19,619
  20,538
  21,505
  22,522
Depreciation, amort., depletion, $m
  2,112
  2,121
  2,130
  2,141
  2,153
  2,166
  2,180
  2,196
  2,212
  2,230
  502
  522
  544
  567
  591
  617
  645
  674
  704
  737
  771
  807
  845
  885
  927
  971
  1,018
  1,067
  1,119
  1,173
Funds from operations, $m
  8,205
  8,375
  8,567
  8,782
  9,020
  9,280
  9,563
  9,869
  10,198
  10,551
  10,457
  10,860
  11,288
  11,743
  12,226
  12,737
  13,278
  13,851
  14,455
  15,093
  15,767
  16,477
  17,225
  18,013
  18,843
  19,717
  20,637
  21,605
  22,624
  23,695
Change in working capital, $m
  -88
  -103
  -118
  -132
  -146
  -161
  -175
  -189
  -204
  -219
  -234
  -250
  -266
  -283
  -300
  -318
  -337
  -356
  -376
  -397
  -419
  -442
  -466
  -491
  -517
  -544
  -573
  -603
  -634
  -667
Cash from operations, $m
  8,293
  8,478
  8,685
  8,915
  9,166
  9,441
  9,738
  10,058
  10,402
  10,770
  10,691
  11,109
  11,554
  12,026
  12,526
  13,055
  13,615
  14,207
  14,831
  15,490
  16,186
  16,918
  17,691
  18,504
  19,360
  20,262
  21,210
  22,208
  23,258
  24,362
Maintenance CAPEX, $m
  -357
  -365
  -373
  -383
  -394
  -405
  -419
  -433
  -448
  -465
  -483
  -502
  -522
  -544
  -567
  -591
  -617
  -645
  -674
  -704
  -737
  -771
  -807
  -845
  -885
  -927
  -971
  -1,018
  -1,067
  -1,119
New CAPEX, $m
  -222
  -252
  -288
  -323
  -358
  -393
  -428
  -463
  -499
  -535
  -573
  -611
  -651
  -691
  -734
  -777
  -823
  -870
  -920
  -971
  -1,024
  -1,080
  -1,139
  -1,200
  -1,264
  -1,331
  -1,400
  -1,474
  -1,550
  -1,631
Cash from investing activities, $m
  -579
  -617
  -661
  -706
  -752
  -798
  -847
  -896
  -947
  -1,000
  -1,056
  -1,113
  -1,173
  -1,235
  -1,301
  -1,368
  -1,440
  -1,515
  -1,594
  -1,675
  -1,761
  -1,851
  -1,946
  -2,045
  -2,149
  -2,258
  -2,371
  -2,492
  -2,617
  -2,750
Free cash flow, $m
  7,713
  7,862
  8,024
  8,209
  8,415
  8,643
  8,892
  9,163
  9,455
  9,770
  9,636
  9,997
  10,381
  10,791
  11,225
  11,686
  12,175
  12,692
  13,238
  13,815
  14,424
  15,067
  15,745
  16,459
  17,212
  18,004
  18,838
  19,716
  20,640
  21,612
Issuance/(repayment) of debt, $m
  793
  958
  1,095
  1,229
  1,362
  1,494
  1,627
  1,761
  1,898
  2,037
  2,179
  2,325
  2,475
  2,631
  2,792
  2,958
  3,132
  3,312
  3,499
  3,695
  3,898
  4,111
  4,333
  4,566
  4,809
  5,063
  5,329
  5,608
  5,900
  6,205
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  793
  958
  1,095
  1,229
  1,362
  1,494
  1,627
  1,761
  1,898
  2,037
  2,179
  2,325
  2,475
  2,631
  2,792
  2,958
  3,132
  3,312
  3,499
  3,695
  3,898
  4,111
  4,333
  4,566
  4,809
  5,063
  5,329
  5,608
  5,900
  6,205
Total cash flow (excl. dividends), $m
  8,506
  8,819
  9,119
  9,438
  9,777
  10,137
  10,519
  10,924
  11,353
  11,807
  11,815
  12,322
  12,857
  13,421
  14,017
  14,645
  15,306
  16,003
  16,737
  17,510
  18,323
  19,178
  20,078
  21,025
  22,021
  23,067
  24,168
  25,324
  26,540
  27,818
Retained Cash Flow (-), $m
  -305
  -347
  -397
  -445
  -494
  -542
  -590
  -638
  -688
  -738
  -790
  -843
  -897
  -953
  -1,012
  -1,072
  -1,135
  -1,200
  -1,268
  -1,339
  -1,413
  -1,490
  -1,570
  -1,655
  -1,743
  -1,835
  -1,931
  -2,032
  -2,138
  -2,249
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  8,202
  8,472
  8,722
  8,992
  9,283
  9,596
  9,930
  10,286
  10,665
  11,069
  11,025
  11,479
  11,960
  12,468
  13,005
  13,573
  14,171
  14,803
  15,469
  16,171
  16,910
  17,689
  18,508
  19,370
  20,278
  21,232
  22,236
  23,292
  24,402
  25,569
Discount rate, %
  7.40
  7.77
  8.16
  8.57
  8.99
  9.44
  9.92
  10.41
  10.93
  11.48
  12.05
  12.66
  13.29
  13.95
  14.65
  15.38
  16.15
  16.96
  17.81
  18.70
  19.63
  20.62
  21.65
  22.73
  23.87
  25.06
  26.31
  27.63
  29.01
  30.46
PV of cash for distribution, $m
  7,636
  7,295
  6,894
  6,473
  6,035
  5,584
  5,123
  4,657
  4,192
  3,734
  3,153
  2,747
  2,362
  2,003
  1,673
  1,375
  1,111
  882
  687
  525
  392
  286
  204
  142
  96
  63
  41
  25
  15
  9
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Altria Group, Inc. is a holding company. The Company's segments include smokeable products, smokeless products and wine. The Company's subsidiaries include Philip Morris USA Inc. (PM USA), which is engaged in the manufacture and sale of cigarettes in the United States; John Middleton Co. (Middleton), which is engaged in the manufacture and sale of machine-made cigars and pipe tobacco, and UST LLC (UST), which, through its 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 tobacco products and wine. Its other operating companies include Nu Mark LLC (Nu Mark), a subsidiary that is engaged in the manufacture and sale of tobacco products, and Philip Morris Capital Corporation (PMCC), a subsidiary that maintains a portfolio of finance assets. Other subsidiaries include Altria Group Distribution Company and Altria Client Services LLC.

FINANCIAL RATIOS  of  Altria Group (MO)

Valuation Ratios
P/E Ratio 6
Price to Sales 3.3
Price to Book 6.7
Price to Tangible Book
Price to Cash Flow 22.5
Price to Free Cash Flow 23.7
Growth Rates
Sales Growth Rate 1.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -17.5%
Cap. Spend. - 3 Yr. Gr. Rate 7.6%
Financial Strength
Quick Ratio NaN
Current Ratio 0.1
LT Debt to Equity 108.7%
Total Debt to Equity 108.7%
Interest Coverage 29
Management Effectiveness
Return On Assets 38.1%
Ret/ On Assets - 3 Yr. Avg. 23.9%
Return On Total Capital 67.2%
Ret/ On T. Cap. - 3 Yr. Avg. 42.2%
Return On Equity 182%
Return On Equity - 3 Yr. Avg. 167.3%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 45%
Gross Margin - 3 Yr. Avg. 43.4%
EBITDA Margin 88.7%
EBITDA Margin - 3 Yr. Avg. 53.4%
Operating Margin 84.7%
Oper. Margin - 3 Yr. Avg. 49.2%
Pre-Tax Margin 84.9%
Pre-Tax Margin - 3 Yr. Avg. 49.4%
Net Profit Margin 55.3%
Net Profit Margin - 3 Yr. Avg. 32.2%
Effective Tax Rate 34.8%
Eff/ Tax Rate - 3 Yr. Avg. 34.9%
Payout Ratio 31.7%

MO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MO stock intrinsic value calculation we used $25364 million for the last fiscal year's total revenue generated by Altria Group. The default revenue input number comes from 0001 income statement of Altria Group. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our MO stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.4%, whose default value for MO is calculated based on our internal credit rating of Altria Group, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Altria Group.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of MO stock the variable cost ratio is equal to 62.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for MO stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Altria Group.

Corporate tax rate of 27% is the nominal tax rate for Altria Group. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the MO stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for MO are equal to 42.3%.

Life of production assets of 86 years is the average useful life of capital assets used in Altria Group operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for MO is equal to -17.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $14787 million for Altria Group - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1874.361 million for Altria Group is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Altria Group at the current share price and the inputted number of shares is $82.2 billion.

RELATED COMPANIES Price Int.Val. Rating
BTI British Americ 35.98 225.78  str.buy

CONTACT US      

About X-FIN       Privacy policy       Terms of use      

Copyright © X-FIN.com 2005-2019. All rigths reserved.