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Altria Group (MO) Fair Value & Analysis

Consumer Defensive · US · Market cap $121B

AG Altria Group logo Altria Group MO · US
Price$67.75
Fair Value$81.81
Upside+20.8%
Quality81/100
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Mixed Growth
Highly profitable · 39.5% net margin
Negative equity (buybacks among others) · generates free cash flow
5.96% dividend yield
Mixed vs. peers (8/14)
Wide moat 94/100
Evidence: High Range $65.52 – $105.99 Share as image

Fair value as of: Aug 6, 2026

From 21 valuation models · updated yesterday

Fair value updated Aug 6, 2026, revised from $84.20 to $81.81 (−2.8%) since Jul 17, 2026. Share price −7.1% over the past month.

A strong business, screening 21% undervalued on our models.

What matters now

  • Our model range runs from $65.52 (bear) to $105.99 (bull), base $81.81. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 81/100 (high quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

$74.92 $29.50 Fair Value $81.81 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 6, 2026.

How to read this chart

60‑month range $29.50 – $74.92 · fair‑value band $65.52 – $105.99 · the $67.75 price screens below the $81.81 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 6, 2026.

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Analysis

Altria Group (MO) currently trades at $67.75, while our model-based Fair Value estimate is $81.81, implying the stock looks roughly 20.8% undervalued today. We read business quality at 81/100 (high quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Altria Group generated revenue of $20.4B at a net margin of 39.5%. Revenue grew 5.3% year over year. Net debt stands at $21.2B. The stock trades on a trailing P/E of 14.7. Fundamentals as of Aug 6, 2026

Our scenario range runs from $65.52 (bear case) to $105.99 (bull case); at $67.75, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 26% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 2% fair-value upside, at 21%, MO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $43.49 $63.61 $98.04 80
Rev-Margin DCF $20.46 $31.80 $46.20 74
ROIC Compounder $60.21 $73.52 $85.86 72
All 21 models by family
DCF Models
FCF DCF $41.03 $61.77 $100.17 38
Owner Earnings $28.95 $44.93 $74.54 31
5Y Revenue Exit $20.46 $30.56 $45.15 39
5Y EBITDA Exit $55.65 $91.48 $138.96 41
5Y P/E Exit $41.39 $66.80 $97.19 38
10Y Revenue Exit $27.58 $35.84 $44.24 36
10Y EBITDA Exit $49.49 $73.51 $99.31 37
10Y P/E Exit $40.84 $58.25 $74.79 35
Earnings-Based
Graham-Dodd $28.29 $34.58 $38.90 54
EPV $60.21 $72.20 $82.70 59
Dividend Discount
Gordon GGM $38.27 $41.89 $47.40 70
DDM Multi-Stage $38.27 $48.01 $61.67 61
Multiples
P/E Multiple $62.40 $83.20 $104.00 63
P/S Multiple $22.61 $30.15 $37.69 58
EV/EBIT $110.00 $150.59 $191.19 53
EV/EBITDA $77.73 $107.56 $137.40 54
EV/Revenue $9.33 $18.38 $27.42 43
Growth DCF
Growth DCF $43.49 $63.61 $98.04 80
Rev-Margin DCF $20.46 $31.80 $46.20 74
Economic Profit
ROIC Compounder $60.21 $73.52 $85.86 72
Growth Earnings
Growth-Adj P/E $44.15 $63.07 $81.99 68

Widest divergence: Multiples ($83.20) versus Growth DCF ($31.80). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $20.4B
Revenue growth (YoY) +5.3%
Net margin 39.5%
Free cash flow $9.1B FY2025
P/E ratio 14.7
Operating margin 62.3%
More key figures
EPS (TTM) $4.79
Dividend yield 6.0%
EPS growth (YoY) +106%
Net debt $21.2B FY2025

Figures from reported company fundamentals · as of Aug 6, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 81/100

Of which business quality 80 · Market factors (momentum, volatility) 65

Profitability 82
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 89
Earnings quality: real cash, not paper profit
Fin. Strength 77
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 51
Price trend over the last 3–12 months (market factor)
52W Momentum 61
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States.

Full company description

Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. It offers cigarettes primarily under the Marlboro brand; large cigars and pipe tobacco under the Black & Mild brand; moist smokeless tobacco and oral tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands; oral nicotine pouches under the on! brand; and e-vapor products under the NJOY ACE brand. The company sells its products to distributors, as well as large retail organizations, such as chain stores. Altria Group, Inc. was founded in 1822 and is headquartered in Richmond, Virginia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Altria Group reported revenue of $20.1B in FY2025 versus $26.0B in FY2021, a compound −6.2%/yr. Reported net income was $6.9B in FY2025, compounding +29.4%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$20.1B
Latest YoY
−1.5%
Avg. growth/yr (3Y)
−7.1%
Avg. growth/yr (5Y)
−5.1%
Avg. growth/yr (40Y)
+1.3%
Revenue −6.2%/yr
FY21 $26.0B
FY22 $25.1B
FY23 $24.5B
FY24 $20.4B
FY25 $20.1B
Net income +29.4%/yr
FY21 $2.5B
FY22 $5.8B
FY23 $8.1B
FY24 $11.3B
FY25 $6.9B

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Cite: Fair Value Calculator (2026). "Altria Group Fair Value". https://www.fairvalue-calculator.com/stock/MO

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Tobacco · 34 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 81 · Top 25%
Fair Value upside +21% · Above median
Return on assets 28% · Top 25%
Net margin (TTM) 40% · Top 25%
Operating margin (TTM) 62% · Top 25%
Revenue growth 5% · Above median
Dividend yield (TTM) 6.0% · Top 25%

Valuation Multiples vs Tobacco median · lower = cheaper

P/E (TTM) 15.1× · Pricier than median
P/S (TTM) 5.93× · Pricier than 75% of peers
P/FCF 13.3× · Pricier than 75% of peers
EV/EBITDA 8.9× · Pricier than median
PEG 1.65× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 61 · sector 36
FUTURE 27 · sector 17
PAST 0 · sector 44
HEALTH 100 · sector 99
DIVIDEND 100 · sector 74

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

Insider activity: 46/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Tobacco

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Tobacco stocks, each showing price versus our Fair Value estimate (as of Aug 6, 2026).

Stock Price Fair Value vs Fair Value
Philip Morris International Inc PM $188.93 $103.71 -45%
British American Tobacco p.l.c. BTI $60.02 $61.14 +2%
ITC Limited ITC ₹281.75 ₹282.04 +0%
KT&G Corporation 033780 179,900 KRW 119,073 KRW -34%
PT Hanjaya Mandala Sampoerna Tbk, HMSP 695.00 IDR 1,193 IDR +72%
Godfrey Phillips India Limited GODFRYPHLP ₹2,337 ₹1,194 -49%
PT Gudang Garam Tbk, GGRM 16,375 IDR 16,988 IDR +4%
TABAK TABAK 18,480 CZK 23,215 CZK +26%
China Tobacco International (HK) Company 6055 HK$23.00 HK$24.09 +5%
Universal Corporation UVV $53.14 $27.50 -48%

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Frequently asked questions

Is Altria Group (MO) overvalued or undervalued?
As of Aug 6, 2026, our model estimates a fair value of $81.81 versus a price of $67.75, about +21% (undervalued).
What is the fair value of MO?
Our model-based fair value for Altria Group is $81.81 (as of Aug 6, 2026), built from audited fundamentals. The current price is $67.75.
What is the quality score of MO?
Altria Group has a Quality Score of 81/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Altria Group (MO)?
Altria Group reported trailing-twelve-month revenue of about $20.4B (latest available figure, as of Aug 6, 2026).
What is the net profit margin of MO?
The net profit margin of Altria Group is about 39.5%, meaning it keeps roughly 39.5% of revenue as net income. Based on the latest reported figures.
Does Altria Group pay a dividend?
Altria Group currently shows a dividend yield of about 5.97% relative to its recent price (as of Aug 6, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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