MOCAUTIOUS

EV/EBITDA

8.9x

Higher than 40% of Consumer Defensive sector peers

Updated 77h ago

Sector Performance

40th percentile

8.9x

Sector Median

10.3x

Sector Avg

10.1x

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Deep Analysis

Altria's current EV/EBITDA of 8.9x means that for every dollar of operating earnings (before interest, taxes, depreciation, and amortization), the market values the entire company (debt plus equity) at $8.90.

This is below the sector median of 11.6x, placing Altria in the 33rd percentile among consumer defensive peers. The metric has remained stable over the last eight quarters, with no year-over-year change and a negligible quarter-over-quarter increase of 0.1%. A low and stable EV/EBITDA relative to peers can signal that the stock is undervalued or that the market expects slower growth, which carries both opportunity and risk. This metric contradicts the overall cautious verdict, as a below-median multiple often suggests a potential value opportunity rather than a reason for caution.

Frequently Asked Questions

What does the EV/EBITDA tell investors about MO?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does MO's EV/EBITDA compare to its sector?

MO's EV/EBITDA of 8.9x compares to a Consumer Defensive sector median of 10.3x, placing it in the 40th percentile.

Who are MO's closest peers by EV/EBITDA?

The closest Consumer Defensive peers by EV/EBITDA include: ADM (11.6x), ABEV (6.8x), PM (17.9x), WMT (21.4x), DNUT (-6.4x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.