Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Altria Group Inc., current price multiples
| Altria Group Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | Food, Beverage & Tobacco | Consumer Staples | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $54.46 | |||||||||
| No. shares of common stock outstanding | 1,694,812,982 | |||||||||
| Growth rate (g) | -58.83% | |||||||||
| Earnings per share (EPS) | $4.80 | |||||||||
| Next year expected EPS | $1.98 | |||||||||
| Operating profit per share | $6.81 | |||||||||
| Sales per share | $14.45 | |||||||||
| Book value per share (BVPS) | $-2.09 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 11.35 | 29.47 | 32.18 | 20.95 | 27.74 | 29.26 | 39.90 | |||
| Price to next year expected earnings | 27.57 | 26.67 | 30.59 | 18.69 | — | 26.02 | 35.71 | |||
| Price to operating profit (P/OP) | 7.99 | 28.07 | 22.23 | 15.01 | 21.14 | 23.61 | 29.72 | |||
| Price to sales (P/S) | 3.77 | 8.06 | 2.05 | 1.84 | 7.75 | 4.57 | 2.17 | |||
Based on: 10-K (reporting date: 2023-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Altria Group Inc., historical price multiples
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The valuation multiples for the period between 2019 and 2023 exhibit a general trend of contraction, with most ratios reaching their lowest points in the final year of the analysis. While significant volatility was present during the middle of the period, the overall trajectory indicates a decrease in the market price relative to fundamental financial metrics.
- Price to Earnings (P/E)
- The P/E ratio experienced substantial volatility, peaking at 37.80 in 2021 before contracting sharply to 14.42 in 2022 and further to 8.87 by the end of 2023. This represents a significant compression of the earnings multiple following the 2021 peak.
- Price to Operating Profit (P/OP)
- A gradual downward trajectory is observed in the P/OP ratio. After remaining relatively stable between 2019 and 2021, the ratio declined from a peak of 8.09 in 2021 to 6.25 in 2023, reflecting a lower valuation relative to operating performance.
- Price to Sales (P/S)
- The P/S ratio remained more consistent than the earnings-based multiples, fluctuating between 3.10 and 3.60 from 2019 through 2022. However, a decline to 2.95 occurred in 2023, marking the lowest sales multiple in the five-year period.
- Price to Book Value (P/BV)
- Available data for the initial two years shows a sharp increase in the P/BV ratio, which rose from 12.69 in 2019 to 28.54 in 2020, prior to the absence of data for the remaining years.
Overall, the simultaneous decline of P/E, P/OP, and P/S ratios by 2023 indicates a comprehensive compression of valuation multiples. The precipitous drop in the P/E ratio is particularly prominent, suggesting a marked shift in market valuation relative to net income compared to the levels observed in 2020 and 2021.
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Price to Earnings (P/E)
Altria Group Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,763,461,775 | 1,785,563,827 | 1,817,257,322 | 1,858,689,654 | 1,858,366,804 | |
| Selected Financial Data (US$) | ||||||
| Net earnings (losses) attributable to Altria (in millions) | 8,130) | 5,764) | 2,475) | 4,467) | (1,293) | |
| Earnings per share (EPS)2 | 4.61 | 3.23 | 1.36 | 2.40 | -0.70 | |
| Share price1, 3 | 40.90 | 46.54 | 51.48 | 43.60 | 42.49 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 8.87 | 14.42 | 37.80 | 18.14 | — | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Coca-Cola Co. | 24.43 | 27.12 | 27.63 | — | — | |
| Mondelēz International Inc. | 20.87 | 33.07 | 21.64 | — | — | |
| PepsiCo Inc. | 25.40 | 26.71 | 30.58 | — | — | |
| Philip Morris International Inc. | 17.69 | 17.54 | 18.37 | — | — | |
| P/E Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 22.54 | 24.66 | 24.78 | — | — | |
| P/E Ratio, Industry | ||||||
| Consumer Staples | 26.62 | 25.35 | 26.07 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net earnings (losses) attributable to Altria ÷ No. shares of common stock outstanding
= 8,130,000,000 ÷ 1,763,461,775 = 4.61
3 Closing price as at the filing date of Altria Group Inc. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 40.90 ÷ 4.61 = 8.87
5 Click competitor name to see calculations.
Analysis of the valuation metrics from 2019 to 2023 reveals a significant divergence between earnings performance and market valuation.
- Share Price Trends
- The share price exhibited a peak in 2021 at 51.48 US$, followed by a consistent decline over the subsequent two years, reaching a five-year low of 40.90 US$ by December 31, 2023.
- Earnings Per Share (EPS) Performance
- Profitability transitioned from a loss of -0.70 US$ in 2019 to a consistent growth pattern. Despite a temporary contraction to 1.36 US$ in 2021, EPS expanded significantly to reach 4.61 US$ by the end of 2023, representing a strong upward trajectory in net income per share.
- Price-to-Earnings (P/E) Ratio Dynamics
- The P/E ratio demonstrated extreme volatility. It rose sharply from 18.14 in 2020 to a peak of 37.80 in 2021, a spike driven by the combination of a record high share price and a dip in EPS. Following this peak, the multiple underwent a rapid compression, falling to 14.42 in 2022 and ending at 8.87 in 2023.
The relationship between earnings and market price shifted markedly over the observed period. While the company achieved its highest EPS in 2023, the market assigned it its lowest P/E multiple of the period. This indicates a substantial devaluation of the earnings multiple, where the share price declined despite the growth in fundamental profitability.
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Price to Operating Profit (P/OP)
Altria Group Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,763,461,775 | 1,785,563,827 | 1,817,257,322 | 1,858,689,654 | 1,858,366,804 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 11,547) | 11,919) | 11,560) | 10,873) | 10,326) | |
| Operating profit per share2 | 6.55 | 6.68 | 6.36 | 5.85 | 5.56 | |
| Share price1, 3 | 40.90 | 46.54 | 51.48 | 43.60 | 42.49 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 6.25 | 6.97 | 8.09 | 7.45 | 7.65 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Coca-Cola Co. | 23.14 | 23.72 | 26.19 | — | — | |
| Mondelēz International Inc. | 18.81 | 25.43 | 20.00 | — | — | |
| PepsiCo Inc. | 19.23 | 20.67 | 20.87 | — | — | |
| Philip Morris International Inc. | 11.96 | 12.96 | 12.90 | — | — | |
| P/OP Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 18.19 | 19.51 | 19.52 | — | — | |
| P/OP Ratio, Industry | ||||||
| Consumer Staples | 19.82 | 18.28 | 19.01 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 11,547,000,000 ÷ 1,763,461,775 = 6.55
3 Closing price as at the filing date of Altria Group Inc. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 40.90 ÷ 6.55 = 6.25
5 Click competitor name to see calculations.
An analysis of valuation multiples from 2019 to 2023 reveals a divergence between operational performance and market valuation. While operational efficiency trended upward for much of the period, the market valuation of those earnings contracted significantly toward the end of the five-year window.
- Share Price Movement
- The share price experienced a period of growth from 2019, peaking at 51.48 US$ in 2021. However, a subsequent downward trend is observed, with the price declining to 40.90 US$ by December 31, 2023, representing a value lower than the starting point of the analyzed period.
- Operating Profit per Share
- A consistent upward trajectory in operating profit per share was maintained from 2019 through 2022, rising from 5.56 US$ to a peak of 6.68 US$. A marginal correction occurred in 2023, with the figure settling at 6.55 US$, indicating that operational profitability remained relatively resilient despite market volatility.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio peaked in 2021 at 8.09, coinciding with the peak in share price. Following this peak, the ratio declined steadily to 6.97 in 2022 and further to 6.25 in 2023. This compression suggests a reduction in the multiple that investors are willing to pay for each dollar of operating profit, driven primarily by the decline in share price rather than a loss in operational earnings.
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Price to Sales (P/S)
Altria Group Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,763,461,775 | 1,785,563,827 | 1,817,257,322 | 1,858,689,654 | 1,858,366,804 | |
| Selected Financial Data (US$) | ||||||
| Net revenues (in millions) | 24,483) | 25,096) | 26,013) | 26,153) | 25,110) | |
| Sales per share2 | 13.88 | 14.05 | 14.31 | 14.07 | 13.51 | |
| Share price1, 3 | 40.90 | 46.54 | 51.48 | 43.60 | 42.49 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 2.95 | 3.31 | 3.60 | 3.10 | 3.14 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Coca-Cola Co. | 5.72 | 6.02 | 6.99 | — | — | |
| Mondelēz International Inc. | 2.87 | 2.85 | 3.24 | — | — | |
| PepsiCo Inc. | 2.52 | 2.75 | 2.93 | — | — | |
| Philip Morris International Inc. | 3.93 | 5.00 | 5.33 | — | — | |
| P/S Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 3.52 | 3.87 | 4.28 | — | — | |
| P/S Ratio, Industry | ||||||
| Consumer Staples | 1.45 | 1.54 | 1.61 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Net revenues ÷ No. shares of common stock outstanding
= 24,483,000,000 ÷ 1,763,461,775 = 13.88
3 Closing price as at the filing date of Altria Group Inc. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 40.90 ÷ 13.88 = 2.95
5 Click competitor name to see calculations.
The Price-to-Sales (P/S) ratio exhibits a period of moderate expansion followed by a steady contraction over the five-year period ending December 31, 2023. The valuation multiple reached a peak in 2021 before trending downward to its lowest point in the observed sequence.
- Share Price Volatility
- The share price experienced an upward trajectory from 2019 to 2021, rising from 42.49 to a peak of 51.48. This growth was followed by a two-year decline, with the price ending at 40.90 in 2023, which represents a valuation below 2019 levels.
- Sales per Share Trends
- Sales per share grew incrementally from 13.51 in 2019 to a peak of 14.31 in 2021. A subsequent marginal decline occurred over the following two years, with the value settling at 13.88 by the end of 2023.
- P/S Ratio Dynamics
- The P/S ratio remained relatively stable between 3.10 and 3.14 during 2019 and 2020. A significant increase to 3.60 was recorded in 2021, driven primarily by the surge in share price exceeding the growth rate of sales per share. From 2022 onward, a consistent compression occurred, with the ratio falling to 3.31 and eventually to 2.95, indicating a reduction in the market's valuation of the company's revenue stream.
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Price to Book Value (P/BV)
Altria Group Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,763,461,775 | 1,785,563,827 | 1,817,257,322 | 1,858,689,654 | 1,858,366,804 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (deficit) attributable to Altria (in millions) | (3,540) | (3,973) | (1,606) | 2,839) | 6,222) | |
| Book value per share (BVPS)2 | -2.01 | -2.23 | -0.88 | 1.53 | 3.35 | |
| Share price1, 3 | 40.90 | 46.54 | 51.48 | 43.60 | 42.49 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | — | — | — | 28.54 | 12.69 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Coca-Cola Co. | 10.09 | 10.73 | 11.74 | — | — | |
| Mondelēz International Inc. | 3.65 | 3.34 | 3.29 | — | — | |
| PepsiCo Inc. | 12.45 | 13.88 | 14.52 | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 11.92 | 12.59 | 13.34 | — | — | |
| P/BV Ratio, Industry | ||||||
| Consumer Staples | 8.14 | 8.11 | 8.15 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Stockholders’ equity (deficit) attributable to Altria ÷ No. shares of common stock outstanding
= -3,540,000,000 ÷ 1,763,461,775 = -2.01
3 Closing price as at the filing date of Altria Group Inc. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 40.90 ÷ -2.01 = —
5 Click competitor name to see calculations.
The valuation metrics for the period between 2019 and 2023 exhibit a significant divergence between market pricing and the underlying book value of the equity.
- Share Price Performance
- The share price demonstrated moderate volatility, rising from 42.49 US$ in 2019 to a peak of 51.48 US$ in 2021. This was followed by a downward trend, with the price declining to 46.54 US$ in 2022 and ending the period at 40.90 US$ in 2023.
- Book Value Per Share (BVPS) Deterioration
- A substantial and continuous erosion of book value per share is observed. BVPS decreased from 3.35 US$ in 2019 to 1.53 US$ in 2020, subsequently shifting to a negative value of -0.88 US$ in 2021. The deficit widened to -2.23 US$ in 2022 before showing a slight improvement to -2.01 US$ in 2023.
- Price to Book Value (P/BV) Ratio Interpretation
- The P/BV ratio expanded significantly from 12.69 in 2019 to 28.54 in 2020, reflecting a scenario where the market price remained resilient despite a sharp decline in the company's book value. From 2021 through 2023, the P/BV ratio became non-calculable as the book value per share entered negative territory, indicating that liabilities exceeded assets on a per-share basis.
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