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 59th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Altria Group Inc ended up being:
Altria Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 12.26% of tickers in our DCF set.
As a business, Altria Group Inc experienced a tax rate of about 36% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than 94.89% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CHEF, JBSS, KHC, HELE, and UL can be thought of as valuation peers to MO, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
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 .