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:
Below please find a table outlining a discounted cash flow forecast for MO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Altria Group Inc ranked in the 67th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 176.33%. In terms of the factors that were most noteworthy in this DCF analysis for MO, they are:
Altria Group Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 21.48% of tickers in our DCF set.
As a business, Altria Group Inc experienced a tax rate of about 47% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than 97.11% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Introduction While the usage of cigarettes has declined dramatically over the last several decades, the fact remains that there are still 5.3 trillion cigarettes sold annually, world-wide, which translates into 265 billion packs. The average price today is $6.65 per pack, which generates annual revenues, world-wide, of $1,762 trillion. E-cigarettes...
Gregory Schnitzler, CFA on Seeking Alpha | September 28, 2020
Source: Unsplash.com/freestocks I simply cannot let this moment in time go unnoticed. It is my opinion that jumping on these two dividend "gifts" could be potentially profitable for any dividend growth portfolio. While we have been watching the markets continue to defy gravity, both AT&T (T) and Altria (MO) have...
Regarded Solutions on Seeking Alpha | September 27, 2020
A few months ago I read an article where someone expressed their hope that tobacco giant Altria Group Inc (NYSE:MO) goes to zero. I did not link to this controversial opinion, in order to discourage that. Q2 2020 hedge fund letters, conferences and more Altria Group Inc manufactures and sells cigarettes, smokeless products, and wine […] The post What If Altria Group Inc (MO) Went To Zero? appeared first on ValueWalk .