MO
Altria Group, Inc. (MO)
Last Price$57.32.6%
Market Cap$96.2B
DCF value
$116.4
Undervalued (DCF value)
103.1%
Discount Rate
4.9%
Long-Term Growth Rate
2.0%
Stock quality
7/10
Great

MO DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'19 ActualDec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 EstimateDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 Terminal
% growth
19,796.0
0.9%
20,841.0
5.3%
21,111.0
1.3%
20,688.0
(2.0%)
20,502.0
(0.9%)
20,382.1
(0.6%)
20,308.1
(0.4%)
20,342.3
0.2%
20,591.6
1.2%
21,345.9
3.7%
22,068.7
3.4%
22,754.8
3.1%
23,399.1
2.8%
23,996.8
2.6%
24,543.3
2.3%
25,034.2
2.0%
20,504.0
103.6%
10,873.0
52.2%
11,560.0
54.8%
8,532.0
41.2%
11,547.0
56.3%
11,599.1
56.9%
11,557.0
56.9%
11,576.5
56.9%
11,718.4
56.9%
12,147.6
56.9%
12,559.0
56.9%
12,949.4
56.9%
13,316.1
56.9%
13,656.2
56.9%
13,967.2
56.9%
14,246.6
56.9%
NOPAT
% effective tax rate
(34,744.4)
(175.5%)
7,028.8
33.7%
7,482.0
35.4%
6,655.6
32.2%
8,590.5
41.9%
8,629.3
42.3%
8,598.0
42.3%
8,612.5
42.3%
8,718.0
42.3%
9,037.4
42.3%
9,343.4
42.3%
9,633.8
42.3%
9,906.6
42.3%
10,159.7
42.3%
10,391.0
42.3%
10,598.9
42.3%
% of revenue
226.0
1.1%
257.0
1.2%
244.0
1.2%
226.0
1.1%
272.0
1.3%
242.9
1.2%
242.0
1.2%
242.4
1.2%
245.4
1.2%
254.4
1.2%
263.0
1.2%
271.2
1.2%
278.8
1.2%
286.0
1.2%
292.5
1.2%
298.3
1.2%
% of revenue
(246.0)
(1.2%)
(231.0)
(1.1%)
(169.0)
(0.8%)
(205.0)
(1.0%)
(196.0)
(1.0%)
(186.7)
(0.9%)
(186.0)
(0.9%)
(186.3)
(0.9%)
(188.6)
(0.9%)
(195.5)
(0.9%)
(202.1)
(0.9%)
(208.4)
(0.9%)
(214.3)
(0.9%)
(219.8)
(0.9%)
(224.8)
(0.9%)
(229.3)
(0.9%)
(53.0)
(0.3%)
249.0
1.2%
3.0
0.0%
(586.0)
(2.8%)
(47.0)
(0.2%)
(207.1)
(1.0%)
(206.3)
(1.0%)
(206.7)
(1.0%)
(209.2)
(1.0%)
(216.8)
(1.0%)
(224.2)
(1.0%)
(231.2)
(1.0%)
(237.7)
(1.0%)
(243.8)
(1.0%)
(249.3)
(1.0%)
(254.3)
(1.0%)
Free Cash Flow to Firm (FCFF)
% of revenue
(34,817.4)
(175.9%)
7,303.8
35.0%
7,560.0
35.8%
6,090.6
29.4%
8,619.5
42.0%
8,478.4
41.6%
8,447.7
41.6%
8,461.9
41.6%
8,565.6
41.6%
8,879.4
41.6%
9,180.0
41.6%
9,465.4
41.6%
9,733.5
41.6%
9,982.1
41.6%
10,209.4
41.6%
10,413.6
41.6%
% of FCFF used in calculation
100.0%
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
Discount factor
0.98
0.93
0.89
0.85
0.81
0.77
0.73
0.70
0.67
Discounted FCFF (DFCFF)
6,846.6
7,874.6
7,597.9
7,507.5
7,398.3
7,271.1
7,126.9
6,966.7
6,791.8

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MO DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
65.4B
30.0%
Terminal Value (TV)
229.3B
Discounted TV
% share of EV
152.6B
70.0%
Total Debt
26.2B
Shares outstanding
1,678.4M
FX rate
1.0
103.1% undervalued

Equity Value Bridge

MO DCF Financials

Revenue
$20.5B -> $24.5B 1.8% CAGR
Operating Income
$11.5B -> $14.0B 1.9% CAGR
FCFF
$8,619.5M -> $10.2B 1.7% CAGR

MO DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
4.0%
$122.0
$122.0
$122.0
$122.0
$122.0
4.5%
$119.0
$119.0
$119.0
$119.0
$119.0
4.9%
$116.0
$116.0
$116.0
$116.0
$116.0
5.5%
$112.0
$113.0
$113.0
$113.0
$113.0
6.0%
$99.0
$108.0
$111.0
$111.0
$111.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
4.0%
113.0%
113.0%
113.0%
113.0%
113.0%
4.5%
108.0%
108.0%
108.0%
108.0%
108.0%
4.9%
102.0%
102.0%
102.0%
102.0%
102.0%
5.5%
95.0%
97.0%
97.0%
97.0%
97.0%
6.0%
73.0%
88.0%
94.0%
94.0%
94.0%

Explore more intrinsic value tools hub for MO

FAQ

What is Altria Group, Inc. DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Altria Group, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $116.4. This suggests it may be undervalued by 103.1% compared to its current price of around $57.3, using a WACC of 4.9% and growth rates of 2.0%.

What is Altria Group, Inc. WACC?

As of Mar 03, 2025, Altria Group, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 4.9%.

What is Altria Group, Inc. Enterprise Value?

As of Mar 03, 2025, Altria Group, Inc.'s Enterprise Value (EV) is approximately $217.9B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.