The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $3,130 M
Debt : $24,930 M
EBITDA : $12,390 M
Net Debt (Debt - Cash): $21,800 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Consumer Defensive
Industry: Tobacco
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 10.77
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $6,353 M
Average Revenue: $26,352 M
Free Cash Flow to Revenue : 24 %
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $20,444 M
Revenue 4 Years Ago (2020-12-31): $26,153 M
Revenue Growth: -4%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $1,718 M
Share Count 5 Years Ago (2020-12-31): $1,859 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $5.41
Dividend Per Share (DPS): $4
Payout Ratio: 74%
Dividend Yield: 7%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 93%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $58
52-Week Low: $38
Threshold Price (15% Above 52-Week Low): $43
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $95,531 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 30 points to above Altria Group (MO) stock.
Value-Trades has assined P/E value 15. Since current year earning per share is $5.41.
The fair value of Altria Group (MO) stock should be (15 x $5.41) = $81.15
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