Altria Group Inc. (MO)

Enterprise Value to EBITDA (EV/EBITDA)

Medium level of difficulty

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Altria Group Inc., EBITDA calculation

US$ in millions

12 months ended	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net earnings attributable to Altria	6,963	10,222	14,239	5,241	5,070
Add: Net income attributable to noncontrolling interest	4	5	5	2	—
Add: Income tax expense	2,374	(399)	7,608	2,835	2,704
Earnings before tax (EBT)	9,341	9,828	21,852	8,078	7,774
Add: Interest expense	697	727	754	808	857
Earnings before interest and tax (EBIT)	10,038	10,555	22,606	8,886	8,631
Add: Depreciation and amortization	227	209	204	225	208
Earnings before interest, tax, depreciation and amortization (EBITDA)	10,265	10,764	22,810	9,111	8,839

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	Altria Group Inc.’s EBITDA declined from 2016 to 2017 and from 2017 to 2018.

Enterprise Value to EBITDA Ratio, Current

Altria Group Inc., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	111,115
Earnings before interest, tax, depreciation and amortization (EBITDA)	10,265
Valuation Ratio
EV/EBITDA	10.82
Benchmarks
EV/EBITDA, Competitors¹
Philip Morris International Inc.	12.48
EV/EBITDA, Sector
Tobacco	11.73
EV/EBITDA, Industry
Consumer Goods	15.90

Based on: 10-K (filing date: 2019-02-26).

¹ Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Enterprise Value to EBITDA Ratio, Historical

Altria Group Inc., historical EV/EBITDA calculation, comparison to benchmarks

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	122,073	134,273	153,976	132,679	120,941
Earnings before interest, tax, depreciation and amortization (EBITDA)²	10,265	10,764	22,810	9,111	8,839
Valuation Ratio
EV/EBITDA³	11.89	12.47	6.75	14.56	13.68
Benchmarks
EV/EBITDA, Competitors⁴
Philip Morris International Inc.	11.62	14.88	15.70	14.49	12.30
EV/EBITDA, Sector
Tobacco	11.74	13.77	9.81	14.52	12.87
EV/EBITDA, Industry
Consumer Goods	14.14	12.40	11.91	12.72	13.08

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

¹ See details »

² See details »

³ 2018 Calculation
EV/EBITDA = EV ÷ EBITDA
= 122,073 ÷ 10,265 = 11.89

⁴ Click competitor name to see calculations.

Valuation ratio	Description	The company
EV/EBITDA	Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock.	Altria Group Inc.’s EV/EBITDA ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018.