Altria Group, Inc. (MO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+31.2%

$101.67

vs $77.52 price

Levered DCF

$87.34

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

5.24

Safe zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	14.03×	8×	8.75×	14.33×	35.37×	17.08×	-72.33×	13.38×
P/B	-27.61×	-40.14×	-20.1×	-20.76×	-54.44×	26.83×	14.99×	6.3×
P/S	4.8×	4.39×	3.47×	3.99×	4.14×	3.66×	4.71×	4.75×
EV / EBITDA	10.89×	7.41×	7.59×	12.02×	21.11×	12.03×	51.52×	11.46×
Gross margin	72.2%	70.3%	69.7%	68.9%	66.3%	62.5%	64.2%	62.4%
Operating margin	59.8%	55.0%	56.3%	57.6%	54.8%	52.2%	52.2%	46.4%
Net margin	34.5%	55.1%	39.7%	27.9%	11.7%	21.4%	-6.5%	35.5%
Current ratio	0.61×	0.51×	0.49×	0.84×	0.71×	0.79×	0.59×	0.2×
Debt / equity	-7.34×	-11.14×	-7.41×	-6.72×	-17.46×	10.38×	4.51×	1.74×
Interest coverage	10.23×	10×	10.05×	10.57×	9.73×	8.89×	7.81×	13.08×
Dividend yield	7.2%	7.6%	9.5%	8.0%	7.4%	8.3%	6.5%	5.8%
Payout ratio	100.2%	60.8%	83.4%	114.5%	260.4%	140.8%	-469.4%	77.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-198.4%	-503.3%	-229.7%	-145.1%	-154.1%	157.3%	-20.8%	47.1%
Return on invested capital	34.3%	33.2%	30.3%	31.1%	23.3%	17.6%	-41.6%	14.1%
Return on assets	19.8%	32.0%	21.1%	15.6%	6.3%	9.4%	-2.6%	12.5%
Free cash flow yield	9.4%	9.6%	12.8%	9.8%	9.4%	10.7%	8.1%	8.7%
Earnings yield	7.2%	12.5%	11.4%	7.0%	2.8%	5.9%	-1.4%	7.5%
Enterprise value	$117.9B	$111.6B	$93.7B	$105.1B	$110.9B	$100.7B	$119.2B	$117.6B
Net debt / EBITDA	1.96×	1.45×	1.83×	2.59×	4.47×	2.93×	11.2×	2.38×
Cash conversion cycle (days)	26	28	47	69	39	76	104	101