Stock Analysis on Net
Stock Analysis on Net
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Altria Group Inc. (NYSE: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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings (losses) attributable to Altria (1,293) 6,963  10,222  14,239  5,241 
Add: Net income attributable to noncontrolling interest (5) 4  5  5  2 
Add: Income tax expense 2,064  2,374  (399) 7,608  2,835 
Earnings before tax (EBT) 766  9,341  9,828  21,852  8,078 
Add: Interest expense 1,322  697  727  754  808 
Earnings before interest and tax (EBIT) 2,088  10,038  10,555  22,606  8,886 
Add: Depreciation and amortization 226  227  209  204  225 
Earnings before interest, tax, depreciation and amortization (EBITDA) 2,314  10,265  10,764  22,810  9,111 

Based on: 10-K (filing date: 2020-02-25), 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).

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 2017 to 2018 and from 2018 to 2019.

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) 100,245 
Earnings before interest, tax, depreciation and amortization (EBITDA) 2,314 
Valuation Ratio
EV/EBITDA 43.32
Benchmarks
EV/EBITDA, Competitors1
Philip Morris International Inc. 11.86
EV/EBITDA, Sector
Tobacco 17.03
EV/EBITDA, Industry
Consumer Goods 16.64

Based on: 10-K (filing date: 2020-02-25).

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 104,984  122,073  134,273  153,976  132,679 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 2,314  10,265  10,764  22,810  9,111 
Valuation Ratio
EV/EBITDA3 45.37 11.89 12.47 6.75 14.56
Benchmarks
EV/EBITDA, Competitors4
Philip Morris International Inc. 13.77 11.62 14.88 15.70 14.49
EV/EBITDA, Sector
Tobacco 18.96 11.74 13.77 9.81 14.52
EV/EBITDA, Industry
Consumer Goods 17.43 15.01 13.58 12.58 14.07

Based on: 10-K (filing date: 2020-02-25), 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).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 104,984 ÷ 2,314 = 45.37

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 decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.