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Altria Group Inc. (MO)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Altria Group Inc., EBITDA calculation

US$ in millions

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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 decreased 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

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 118,288 
Earnings before interest, tax, depreciation and amortization (EBITDA) 10,265 
Valuation Ratio
EV/EBITDA 11.52
Benchmarks
EV/EBITDA, Competitors1
Philip Morris International Inc. 12.80
EV/EBITDA, Sector
Tobacco 12.22
EV/EBITDA, Industry
Consumer Goods 16.71

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

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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 —
EV/EBITDA, Industry
Consumer Goods 14.17 12.40 11.84 12.65 —

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 decreased from 2017 to 2018.