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

Common Stock Valuation Ratios (Price Multiples)

Beginner level

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

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Altria Group Inc. Philip Morris International Inc. Tobacco Consumer Goods
Selected Financial Data
Current share price (P) $37.17
No. shares of common stock outstanding 1,858,397,202
 
Earnings per share (EPS) $-0.70
Operating profit per share $5.56
Sales per share $13.51
Book value per share (BVPS) $3.35
Valuation Ratios (Price Multiples)
Price to operating profit (P/OP) 6.69 10.55 8.64 22.47
Price to sales (P/S) 2.75 1.43 1.75 3.74
Price to book value (P/BV) 11.10 11.44

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

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

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Price to earnings (P/E) 14.03 11.90 10.16 23.30
Price to operating profit (P/OP) 7.65 10.71 12.73 16.51 14.61
Price to sales (P/S) 3.14 3.85 4.76 5.62 4.80
Price to book value (P/BV) 12.69 6.60 7.91 11.33 42.41

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Altria Group Inc.’s P/E ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Altria Group Inc.’s P/OP ratio decreased from 2017 to 2018 and from 2018 to 2019.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Altria Group Inc.’s P/S ratio decreased from 2017 to 2018 and from 2018 to 2019.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Altria Group Inc.’s P/BV ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to Earnings (P/E)

Altria Group Inc., historical P/E 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$)
Net earnings (losses) attributable to Altria (in millions) (1,293) 6,963  10,222  14,239  5,241 
Earnings per share (EPS)2 -0.70 3.71 5.38 7.34 2.68
Share price1, 3 42.49 52.10 64.00 74.59 62.38
Valuation Ratio
P/E ratio4 14.03 11.90 10.16 23.30
Benchmarks
P/E Ratio, Competitors5
Philip Morris International Inc. 18.94 15.08 26.52 22.84 20.57
P/E Ratio, Sector
Tobacco 36.49 14.59 17.33 14.33 21.75
P/E Ratio, Industry
Consumer Goods 33.92 20.80 24.15 21.38 24.01

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 2019 Calculation
EPS = Net earnings (losses) attributable to Altria ÷ No. shares of common stock outstanding
= -1,293,000,000 ÷ 1,858,366,804 = -0.70

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

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 42.49 ÷ -0.70 =

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Altria Group Inc.’s P/E ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
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$)
Operating income (in millions) 10,326  9,115  9,556  8,762  8,361 
Operating profit per share2 5.56 4.86 5.03 4.52 4.27
Share price1, 3 42.49 52.10 64.00 74.59 62.38
Valuation Ratio
P/OP ratio4 7.65 10.71 12.73 16.51 14.61
Benchmarks
P/OP Ratio, Competitors5
Philip Morris International Inc. 12.92 10.48 13.91 14.71 13.31
P/OP Ratio, Sector
Tobacco 10.31 10.59 13.38 15.52 13.88
P/OP Ratio, Industry
Consumer Goods 21.38 16.27 17.11 17.57 16.39

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 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 10,326,000,000 ÷ 1,858,366,804 = 5.56

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

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 42.49 ÷ 5.56 = 7.65

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Altria Group Inc.’s P/OP ratio decreased from 2017 to 2018 and from 2018 to 2019.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
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$)
Net revenues (in millions) 25,110  25,364  25,576  25,744  25,434 
Sales per share2 13.51 13.53 13.46 13.27 12.99
Share price1, 3 42.49 52.10 64.00 74.59 62.38
Valuation Ratio
P/S ratio4 3.14 3.85 4.76 5.62 4.80
Benchmarks
P/S Ratio, Competitors5
Philip Morris International Inc. 1.75 1.49 2.05 2.12 1.91
P/S Ratio, Sector
Tobacco 2.09 2.06 2.72 3.02 2.65
P/S Ratio, Industry
Consumer Goods 3.56 2.98 3.20 3.17 2.85

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 2019 Calculation
Sales per share = Net revenues ÷ No. shares of common stock outstanding
= 25,110,000,000 ÷ 1,858,366,804 = 13.51

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

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 42.49 ÷ 13.51 = 3.14

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Altria Group Inc.’s P/S ratio decreased from 2017 to 2018 and from 2018 to 2019.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
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$)
Stockholders’ equity attributable to Altria (in millions) 6,222  14,787  15,377  12,770  2,880 
Book value per share (BVPS)2 3.35 7.89 8.09 6.58 1.47
Share price1, 3 42.49 52.10 64.00 74.59 62.38
Valuation Ratio
P/BV ratio4 12.69 6.60 7.91 11.33 42.41
Benchmarks
P/BV Ratio, Competitors5
Philip Morris International Inc.
P/BV Ratio, Sector
Tobacco 93.19 85.59 3,704.91
P/BV Ratio, Industry
Consumer Goods 10.89 8.39 8.74 8.54 7.91

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 2019 Calculation
BVPS = Stockholders’ equity attributable to Altria ÷ No. shares of common stock outstanding
= 6,222,000,000 ÷ 1,858,366,804 = 3.35

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

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 42.49 ÷ 3.35 = 12.69

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Altria Group Inc.’s P/BV ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.