Stock Analysis on Net

Altria Group Inc. (NYSE:MO)

Enterprise Value to FCFF (EV/FCFF)

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Free Cash Flow to The Firm (FCFF)

Altria Group Inc., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net earnings (losses) attributable to Altria 4,467  (1,293) 6,963  10,222  14,239 
Net (earnings) losses attributable to noncontrolling interests (13) (5)
Net noncash charges 3,682  9,188  349  (3,451) (10,153)
Cash effects of changes in operating capital 249  (53) 1,075  (1,854) (300)
Net cash provided by operating activities 8,385  7,837  8,391  4,922  3,791 
Cash paid, interest, net of tax1 805  871  526  537  505 
Capital expenditures (231) (246) (238) (199) (189)
Free cash flow to the firm (FCFF) 8,959  8,462  8,679  5,260  4,107 

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Altria Group Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Altria Group Inc. FCFF decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Interest Paid, Net of Tax

Altria Group Inc., interest paid, net of tax calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Effective Income Tax Rate (EITR)
EITR1 35.40% 21.00% 25.30% 22.90% 34.80%
Interest Paid, Net of Tax
Cash paid, interest, before tax 1,246  1,102  704  696  775 
Less: Cash paid, interest, tax2 441  231  178  159  270 
Cash paid, interest, net of tax 805  871  526  537  505 

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 See details »

2 2020 Calculation
Cash paid, interest, tax = Cash paid, interest × EITR
= 1,246 × 35.40% = 441


Enterprise Value to FCFF Ratio, Current

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

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 116,627 
Free cash flow to the firm (FCFF) 8,959 
Valuation Ratio
EV/FCFF 13.02
Benchmarks
EV/FCFF, Competitors1
Coca-Cola Co. 30.97
Mondelēz International Inc. 32.93
PepsiCo Inc. 37.72
Philip Morris International Inc. 18.83
EV/FCFF, Sector
Food, Beverage & Tobacco 25.18
EV/FCFF, Industry
Consumer Staples 27.41

Based on: 10-K (reporting date: 2020-12-31).

1 Click competitor name to see calculations.

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


Enterprise Value to FCFF Ratio, Historical

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

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 105,651  104,984  122,073  134,273  153,976 
Free cash flow to the firm (FCFF)2 8,959  8,462  8,679  5,260  4,107 
Valuation Ratio
EV/FCFF3 11.79 12.41 14.07 25.53 37.49
Benchmarks
EV/FCFF, Competitors4
Coca-Cola Co. 26.04 28.08 32.62 36.36 28.13
Mondelēz International Inc. 28.50 29.63 26.47 42.31 38.75
PepsiCo Inc. 30.09 35.73 24.55 22.21 20.92
Philip Morris International Inc. 16.31 16.47 16.76 23.52 24.24
EV/FCFF, Sector
Food, Beverage & Tobacco 21.25 23.13 21.52 27.66 27.34
EV/FCFF, Industry
Consumer Staples 22.76 22.90 19.98 21.10 22.70

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 See details »

2 See details »

3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 105,651 ÷ 8,959 = 11.79

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Altria Group Inc. EV/FCFF ratio decreased from 2018 to 2019 and from 2019 to 2020.