DCF Tool

MO

Altria Group Inc. – Tobacco Manufacturing
Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide. It sells its tobacco products primarily to wholesalers, including distributors; and large retail organizations, such as chain stores.
Analysis Results
Intrinsic Value $158.40
Latest Price $46.20
Relative Value 71% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 5.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 8.1 7.84
2024 8.5 7.96
2025 8.92 8.09
2026 9.36 8.22
2027 9.83 8.35
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 295 billion. This corresponds to a present value of 242 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 40.4 billion. Adding in the terminal value gives a total present value of 283 billion.

There are presently 1.79 billion outstanding shares, so the intrinsic value per share is 158.4.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,220,000,000
Current Cash 4,030,000,000
Current Liabilities 8,616,000,000
Current Debt 1,556,000,000
Non-Cash Working Capital (NCWC) -3,870,000,000
Change in NCWC 2,065,000,000
EBIT 8,278,000,000
Tax Provision 1,625,000,000
Depreciation and Amortization 226,000,000
Capital Expenditure -205,000,000
Unlevered Free Cash Flow 8,543,489,782
Current Assets 6,083,000,000
Current Cash 4,544,000,000
Current Liabilities 8,579,000,000
Current Debt 1,105,000,000
Non-Cash Working Capital (NCWC) -5,935,000,000
Change in NCWC -544,000,000
EBIT 5,581,000,000
Tax Provision 1,349,000,000
Depreciation and Amortization 244,000,000
Capital Expenditure -169,000,000
Unlevered Free Cash Flow 3,143,179,654
Current Assets 7,117,000,000
Current Cash 4,945,000,000
Current Liabilities 9,063,000,000
Current Debt 1,500,000,000
Non-Cash Working Capital (NCWC) -5,391,000,000
Change in NCWC -924,000,000
EBIT 10,758,000,000
Tax Provision 2,436,000,000
Depreciation and Amortization 257,000,000
Capital Expenditure -231,000,000
Unlevered Free Cash Flow 6,056,445,863
Current Assets 4,824,000,000
Current Cash 2,117,000,000
Current Liabilities 8,174,000,000
Current Debt 1,000,000,000
Non-Cash Working Capital (NCWC) -4,467,000,000
Change in NCWC -88,000,000
EBIT 12,210,000,000
Tax Provision 2,064,000,000
Depreciation and Amortization 226,000,000
Capital Expenditure -246,000,000
Unlevered Free Cash Flow 10,038,000,000
Current Assets 4,299,000,000
Current Cash 1,333,000,000
Current Liabilities 21,193,000,000
Current Debt 13,848,000,000
Non-Cash Working Capital (NCWC) -4,379,000,000
Change in NCWC -1,542,000,000
EBIT 10,388,000,000
Tax Provision 2,374,000,000
Depreciation and Amortization 227,000,000
Capital Expenditure -238,000,000
Unlevered Free Cash Flow 6,194,906,648
Current Assets 4,344,000,000
Current Cash 1,253,000,000
Current Liabilities 6,792,000,000
Current Debt 864,000,000
Non-Cash Working Capital (NCWC) -2,837,000,000
Change in NCWC 1,847,000,000
EBIT 10,121,000,000
Tax Provision -399,000,000
Depreciation and Amortization 209,000,000
Capital Expenditure -199,000,000
Unlevered Free Cash Flow 11,978,000,000
Current Assets 7,260,000,000
Current Cash 4,569,000,000
Current Liabilities 7,375,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -4,684,000,000
Change in NCWC -2,566,000,000
EBIT 9,736,000,000
Tax Provision 7,608,000,000
Depreciation and Amortization 204,000,000
Capital Expenditure -189,000,000
Unlevered Free Cash Flow 3,795,310,818
Current Assets 7,325,000,000
Current Cash 2,369,000,000
Current Liabilities 7,078,000,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) -2,118,000,000
Change in NCWC -616,000,000
EBIT 9,163,000,000
Tax Provision 2,835,000,000
Depreciation and Amortization 225,000,000
Capital Expenditure -229,000,000
Unlevered Free Cash Flow 5,326,419,390
Current Assets 8,492,000,000
Current Cash 3,321,000,000
Current Liabilities 7,673,000,000
Current Debt 1,000,000,000
Non-Cash Working Capital (NCWC) -1,502,000,000
Change in NCWC -381,000,000
EBIT 8,627,000,000
Tax Provision 2,704,000,000
Depreciation and Amortization 208,000,000
Capital Expenditure -163,000,000
Unlevered Free Cash Flow 5,290,304,347
Current Assets 8,587,000,000
Current Cash 3,175,000,000
Current Liabilities 7,058,000,000
Current Debt 525,000,000
Non-Cash Working Capital (NCWC) -1,121,000,000
Change in NCWC -342,000,000
EBIT 9,108,000,000
Tax Provision 2,407,000,000
Depreciation and Amortization 212,000,000
Capital Expenditure -131,000,000
Unlevered Free Cash Flow 5,688,982,713
Current Assets 8,913,000,000
Current Cash 2,900,000,000
Current Liabilities 8,251,000,000
Current Debt 1,459,000,000
Non-Cash Working Capital (NCWC) -779,000,000
Change in NCWC -1,174,000,000
EBIT 8,486,000,000
Tax Provision 2,294,000,000
Depreciation and Amortization 225,000,000
Capital Expenditure -124,000,000
Unlevered Free Cash Flow 4,407,459,780

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.