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Altria Group Inc. – Tobacco Manufacturing
Altria Group, Inc. is an American corporation and one of the worlds largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in Henrico County, Virginia, just outside the city of Richmond.
Analysis Results
Intrinsic Value $143.89
Latest Price $41.91
Relative Value 71% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 5.2%. 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 7.69
2024 8.5 7.67
2025 8.92 7.65
2026 9.36 7.63
2027 9.83 7.61
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 217 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 38.3 billion. Adding in the terminal value gives a total present value of 255 billion.

There are presently 1.77 billion outstanding shares, so the intrinsic value per share is 143.89.

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

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