Discounted Cash Flow (DCF) Analysis Levered

Altria Group, Inc. (MO)

$46.9004

-0.01 (-0.02%)
All numbers are in Millions, Currency in USD
Stock DCF: 157.13 | 46.9004 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 19,62719,79620,84121,11125,09626,746.8028,506.2030,381.3332,379.8034,509.73
Revenue (%)
Operating Cash Flow 8,3917,8378,3858,4058,25610,446.5211,133.6911,866.0612,646.6013,478.49
Operating Cash Flow (%)
Capital Expenditure -238-246-231-169-205-277.15-295.39-314.82-335.52-357.59
Capital Expenditure (%)
Free Cash Flow 8,1537,5918,1548,2368,05110,169.3610,838.3011,551.2412,311.0813,120.89

Weighted Average Cost Of Capital

Share price $ 46.9,004
Beta 0.678
Diluted Shares Outstanding 1,790
Cost of Debt
Tax Rate 21.99
After-tax Cost of Debt 3.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.831
Total Debt 26,680
Total Equity 83,951.72
Total Capital 110,631.72
Debt Weighting 24.12
Equity Weighting 75.88
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 19,62719,79620,84121,11125,09626,746.8028,506.2030,381.3332,379.8034,509.73
Operating Cash Flow 8,3917,8378,3858,4058,25610,446.5211,133.6911,866.0612,646.6013,478.49
Capital Expenditure -238-246-231-169-205-277.15-295.39-314.82-335.52-357.59
Free Cash Flow 8,1537,5918,1548,2368,05110,169.3610,838.3011,551.2412,311.0813,120.89
WACC
PV LFCF 9,600.089,658.809,717.889,777.339,837.13
SUM PV LFCF 48,591.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.93
Free cash flow (t + 1) 13,383.31
Terminal Value 340,542.30
Present Value of Terminal Value 255,314.93

Intrinsic Value

Enterprise Value 303,906.15
Net Debt 22,650
Equity Value 281,256.15
Shares Outstanding 1,790
Equity Value Per Share 157.13