Altria Group, Inc. (MO) Stock Valuation — PE Analysis
Tobacco · NYSE
Current Price
$71.94
PE Ratio (TTM)
14.9x
Intrinsic Value
$72.68
+1.0% margin of safety
COMPETITIVE MOAT
↑Brand Loyalty & Pricing Power
Altria's established brands like Marlboro command significant consumer loyalty. This allows for consistent price increases, driving revenue despite declining volumes.
↑Distribution Network
A vast and efficient distribution network ensures widespread availability of its products across the US. This creates a barrier to entry for smaller competitors.
↑Regulatory Hurdles
The high regulatory barriers and complex approval processes for new tobacco products make it difficult for new entrants to compete. Altria navigates this landscape effectively.
INVESTMENT RISKS
↓Declining Smoking Rates
The secular decline in cigarette consumption in the US directly impacts Altria's core business. This trend is expected to continue, pressuring sales volumes.
↓Regulatory Scrutiny & Policy Shifts
Increased government scrutiny and potential policy changes from the FDA regarding nicotine levels or product bans pose significant threats. Senators questioning lobbying efforts highlight this risk.
↓Transition to Reduced-Risk Products
The success of Altria's transition to reduced-risk products is uncertain. Competition in this evolving market is intense, and consumer adoption is not guaranteed.
Base case
MO base case PE valuation
A base case PE valuation for MO estimates a fair value of about $72.68 per share, against a current price of $71.94. The model assumes 3.3% annual earnings growth, a 15x target PE multiple, and a 10% discount rate.
Intrinsic Value
$72.68
Margin of safety
+1.0%
Expected annual return
+0.2%
Base case assumptions: 3.3% annual earnings growth, 15x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the MO PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Altria Group, Inc. respond.
Open PE Calculator for MOCompany Overview
Operating across the United States through its subsidiaries, Altria Group, Inc. is a prominent manufacturer and marketer of both combustible and oral tobacco items. Its portfolio features cigarettes, primarily under the iconic Marlboro brand, alongside cigars and pipe tobacco mainly offered as Black & Mild. The enterprise further provides an assortment of moist smokeless tobacco products, including Copenhagen, Skoal, Red Seal, and Husky, in addition to its on! brand of oral nicotine pouches. Altria distributes its merchandise chiefly to wholesale partners, such as independent distributors, and directly to substantial retail organizations, including major chain stores. The corporation, founded in 1822, maintains its principal offices in Richmond, Virginia.
Financial Metrics — MO PE Stock Valuation Data
PE Ratio (TTM)
14.9x
PEG Ratio
n/m
Earnings Yield
6.69%
ROE (TTM)
-255.3%
Revenue/Share (TTM)
$13.04
Dividend Yield
5.89%
Debt/Equity
n/m
Frequently Asked Questions
What is the PE ratio of MO?
The trailing twelve-month PE ratio of MO reflects how much investors pay per dollar of Altria Group, Inc.'s earnings. This metric is most useful when compared to Tobacco peers and the company's own historical range.
Is MO overvalued based on PE ratio?
MO's PE of 14.9x combined with a PEG ratio of -0.74 provides a growth-adjusted perspective. MO has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Tobacco, a DCF analysis may be more appropriate.
How do I value MO stock using PE ratio?
To value Altria Group, Inc. using PE: (1) Compare the current PE (14.9x) against the Tobacco median to assess relative pricing, (2) check the PEG ratio (-0.74) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of MO?
MO's PEG ratio is -0.74, calculated by dividing the PE ratio (14.9x) by the expected earnings growth rate. Because MO has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for MO stock valuation?
PE ratio gives a quick relative read — how MO is priced versus Tobacco peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See MO DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Defensive valuationsP/E and DCF value MO with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.