Tobacco · NYSE
Current Price
$68.20
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Altria Group, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company provides cigarettes primarily under the Marlboro brand; cigars and pipe tobacco principally under the Black & Mild brand; and moist smokeless tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands, as well as provides on! oral nicotine pouches. It sells its tobacco products primarily to wholesalers, including distributors; and large retail organizations, such as chain stores. Altria Group, Inc. was founded in 1822 and is headquartered in Richmond, Virginia.
ROIC (TTM)
28.2%
ROE (TTM)
-215.2%
FCF Yield
7.96%
Based on trailing twelve-month data, MO shows a free cash flow per share of N/A and a ROIC of 28.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 7.96% are important context metrics when evaluating MO's stock valuation relative to peers.
The intrinsic value of MO depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether MO is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $68.20. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Altria Group, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Tobacco industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MO's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Altria Group, Inc., this means projecting how much free cash flow the Tobacco will produce over the next 5-10 years, then discounting those amounts to today's dollars. MO's ROIC of 28.2% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For MO, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
