Stock Analysis on Net
Stock Analysis on Net
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Altria Group Inc. (NYSE:MO)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Altria Group Inc., FCFE 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 
Net (earnings) losses attributable to noncontrolling interests (5)
Net noncash charges 9,188  349  (3,451) (10,153) 342 
Cash effects of changes in operating capital (53) 1,075  (1,854) (300) 225 
Net cash provided by operating activities 7,837  8,391  4,922  3,791  5,810 
Capital expenditures (246) (238) (199) (189) (229)
Proceeds from short-term borrowings —  12,800  —  —  — 
Repayment of short-term borrowings (12,800) —  —  —  — 
Long-term debt issued 16,265  —  —  1,976  — 
Long-term debt repaid (1,144) (864) —  (933) (1,793)
Free cash flow to equity (FCFE) 9,912  20,089  4,723  4,645  3,788 

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
FCFE Free cash flow to equity is the cash flow available to Altria Group Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Altria Group Inc.’s FCFE increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Price to FCFE Ratio, Current

Altria Group Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 1,858,419,165
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 9,912 
FCFE per share 5.33
Current share price (P) 41.20
Valuation Ratio
P/FCFE 7.72
Benchmarks
P/FCFE, Competitors1
Philip Morris International Inc. 14.50
P/FCFE, Sector
Tobacco 10.89
P/FCFE, Industry
Consumer Goods 37.65

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

1 Click competitor name to see calculations.

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


Price to FCFE Ratio, Historical

Altria Group Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 1,858,366,804 1,874,430,847 1,900,449,362 1,939,420,437 1,957,931,815
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 9,912  20,089  4,723  4,645  3,788 
FCFE per share3 5.33 10.72 2.49 2.40 1.93
Share price1, 4 42.49 52.10 64.00 74.59 62.38
Valuation Ratio
P/FCFE5 7.97 4.86 25.75 31.14 32.24
Benchmarks
P/FCFE, Competitors6
Philip Morris International Inc. 15.65 20.52 13.87 19.80 20.34
P/FCFE, Sector
Tobacco 11.56 8.38 17.33 23.96 24.54
P/FCFE, Industry
Consumer Goods 25.41 19.44 18.43 17.54 18.15

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 Data adjusted for splits and stock dividends.

2 See details »

3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 9,912,000,000 ÷ 1,858,366,804 = 5.33

4 Closing price as at the filing date of Altria Group Inc.’s Annual Report.

5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 42.49 ÷ 5.33 = 7.97

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Altria Group Inc.’s P/FCFE ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.