Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Altria Group, Inc. (MO)

Company Dividend Discount ModelIndustry: TobaccoSector: Consumer Defensive

Valuation Snapshot

Stable Growth$68.12 - $118.60$89.72
Multi-Stage$122.38 - $134.15$128.15
Blended Fair Value$108.94
Current Price$66.06
Upside64.90%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS2.44%5.81%4.064.023.913.823.733.603.212.852.672.48
YoY Growth--0.97%2.73%2.37%2.48%3.64%12.08%12.65%6.54%7.97%7.37%
Dividend Yield--6.76%9.29%8.76%7.31%7.28%9.30%5.56%4.57%3.74%3.95%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)8,869.00
(-) Cash Dividends Paid (M)8,385.00
(=) Cash Retained (M)484.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,773.801,108.63665.18
Cash Retained (M)484.00484.00484.00
(-) Cash Required (M)-1,773.80-1,108.63-665.18
(=) Excess Retained (M)-1,289.80-624.63-181.18
(/) Shares Outstanding (M)1,688.001,688.001,688.00
(=) Excess Retained per Share-0.76-0.37-0.11
LTM Dividend per Share4.974.974.97
(+) Excess Retained per Share-0.76-0.37-0.11
(=) Adjusted Dividend4.204.604.86
WACC / Discount Rate6.63%6.63%6.63%
Growth Rate0.44%1.44%2.44%
Fair Value$68.12$89.72$118.60
Upside / Downside3.11%35.82%79.54%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)8,869.008,996.339,125.499,256.509,389.409,524.209,809.92
Payout Ratio94.54%93.63%92.73%91.82%90.91%90.00%92.50%
Projected Dividends (M)8,385.008,423.658,461.678,499.058,535.768,571.789,074.18

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.63%6.63%6.63%
Growth Rate0.44%1.44%2.44%
Year 1 PV (M)7,821.767,899.647,977.51
Year 2 PV (M)7,295.667,441.677,589.12
Year 3 PV (M)6,804.307,009.577,218.93
Year 4 PV (M)6,345.416,601.926,866.14
Year 5 PV (M)5,916.876,217.366,529.93
PV of Terminal Value (M)172,394.25181,149.18190,256.25
Equity Value (M)206,578.25216,319.34226,437.88
Shares Outstanding (M)1,688.001,688.001,688.00
Fair Value$122.38$128.15$134.15
Upside / Downside85.26%93.99%103.07%

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