VGR
Vector Group Ltd. (VGR)
Last Price$15.00.0%
Market Cap$2,304.6M
DCF value
$48.8
Undervalued (DCF value)
225.8%
Discount Rate
5.9%
Long-Term Growth Rate
2.0%
Stock quality
7/10
Good

VGR 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
1,119.6
(40.1%)
1,228.7
9.7%
1,220.7
(0.6%)
1,441.0
18.0%
1,424.3
(1.2%)
1,429.9
0.4%
1,434.4
0.3%
1,720.2
19.9%
2,024.4
17.7%
2,337.0
15.4%
2,645.5
13.2%
2,935.6
11.0%
3,191.6
8.7%
3,398.4
6.5%
3,542.5
4.2%
3,613.4
2.0%
234.6
21.0%
294.4
24.0%
320.4
26.3%
339.0
23.5%
336.6
23.6%
326.0
22.8%
327.1
22.8%
392.2
22.8%
461.6
22.8%
532.9
22.8%
603.2
22.8%
669.3
22.8%
727.7
22.8%
774.9
22.8%
807.8
22.8%
823.9
22.8%
NOPAT
% effective tax rate
176.3
15.7%
206.4
16.8%
224.6
18.4%
243.9
16.9%
248.7
17.5%
240.8
16.8%
241.6
16.8%
289.7
16.8%
341.0
16.8%
393.6
16.8%
445.6
16.8%
494.4
16.8%
537.6
16.8%
572.4
16.8%
596.7
16.8%
608.6
16.8%
% of revenue
45.5
4.1%
38.1
3.1%
38.3
3.1%
10.6
0.7%
10.4
0.7%
21.9
1.5%
22.0
1.5%
26.4
1.5%
31.0
1.5%
35.8
1.5%
40.5
1.5%
45.0
1.5%
48.9
1.5%
52.1
1.5%
54.3
1.5%
55.4
1.5%
% of revenue
(12.6)
(1.1%)
(19.1)
(1.6%)
(13.5)
(1.1%)
(10.0)
(0.7%)
(10.6)
(0.7%)
(12.1)
(0.8%)
(12.1)
(0.8%)
(14.6)
(0.8%)
(17.1)
(0.8%)
(19.8)
(0.8%)
(22.4)
(0.8%)
(24.8)
(0.8%)
(27.0)
(0.8%)
(28.8)
(0.8%)
(30.0)
(0.8%)
(30.6)
(0.8%)
(41.6)
(3.7%)
8.5
0.7%
(50.9)
(4.2%)
(37.5)
(2.6%)
(0.9)
(0.1%)
(32.6)
(2.3%)
(32.7)
(2.3%)
(39.2)
(2.3%)
(46.1)
(2.3%)
(53.3)
(2.3%)
(60.3)
(2.3%)
(66.9)
(2.3%)
(72.8)
(2.3%)
(77.5)
(2.3%)
(80.8)
(2.3%)
(82.4)
(2.3%)
Free Cash Flow to Firm (FCFF)
% of revenue
167.6
15.0%
233.9
19.0%
198.4
16.3%
207.1
14.4%
247.5
17.4%
218.1
15.2%
218.7
15.2%
262.3
15.2%
308.7
15.2%
356.4
15.2%
403.4
15.2%
447.7
15.2%
486.7
15.2%
518.2
15.2%
540.2
15.2%
551.0
15.2%
% of FCFF used in calculation
23.3%
100.0%
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
9.50
Discount factor
0.97
0.92
0.87
0.82
0.77
0.73
0.69
0.65
0.61
0.58
Discounted FCFF (DFCFF)
49.3
200.7
227.2
252.5
275.2
294.1
308.2
316.3
318.0
313.0

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VGR DCF Value

DCF Value Calculation

as of Oct 07, 2024
Sum of DFCFF
% share of EV
2,554.5M
30.0%
Terminal Value (TV)
10.3B
Discounted TV
% share of EV
5,960.6M
70.0%
Total Debt
1,387.4M
7,507.2M
Shares outstanding
153.7M
FX rate
1.0
225.8% undervalued

Equity Value Bridge

VGR DCF Financials

Revenue
$1,424.3M -> $3,542.5M 9.5% CAGR
Operating Income
$336.6M -> $807.8M 9.1% CAGR
FCFF
$247.5M -> $540.2M 8.1% CAGR

VGR DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
5.0%
$52.0
$52.0
$52.0
$52.0
$52.0
5.5%
$50.0
$50.0
$50.0
$50.0
$50.0
5.9%
$49.0
$49.0
$49.0
$49.0
$49.0
6.5%
$45.0
$47.0
$47.0
$47.0
$47.0
7.0%
$41.0
$43.0
$46.0
$46.0
$46.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
5.0%
247.0%
247.0%
247.0%
247.0%
247.0%
5.5%
234.0%
234.0%
234.0%
234.0%
234.0%
5.9%
227.0%
227.0%
227.0%
227.0%
227.0%
6.5%
200.0%
214.0%
214.0%
214.0%
214.0%
7.0%
174.0%
187.0%
207.0%
207.0%
207.0%

Explore more intrinsic value tools hub for VGR

FAQ

What is Vector Group Ltd. DCF (discounted cash flow) valuation?

As of Oct 07, 2024, Vector Group Ltd.'s Discounted Cash Flow (DCF) valuation estimates its share price at $48.8. This suggests it may be undervalued by 225.8% compared to its current price of around $15.0, using a WACC of 5.9% and growth rates of 2.0%.

What is Vector Group Ltd. WACC?

As of Oct 07, 2024, Vector Group Ltd.'s Weighted Average Cost of Capital (WACC) is approximately 5.9%.

What is Vector Group Ltd. Enterprise Value?

As of Oct 07, 2024, Vector Group Ltd.'s Enterprise Value (EV) is approximately $8,515.1M. 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.