Altria Group manufactures and sells cigarettes, smokeless products, and wine in the United States and internationally. The company was founded in 1919 and is based in Richmond, Virginia.
MO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Altria Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Altria Group Inc ranked in the 53th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for MO, they are:
Altria Group Inc's effective tax rate, as measured by taxes paid relative to net income, is at 50 -- greater than 95.6% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 69.38% of stocks in its sector (Consumer Defensive).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Altria Group Inc? See GPX, SFM, BREW, SJM, and FIZZ.