P/E Ratio
Higher than 50% of Consumer Defensive sector peers
Updated 1878h ago
Sector Performance
50th percentileMO
14.0x
Sector Median
14.0x
Sector Avg
19.5x
Deep Analysis
# P/E Ratio Analysis
Altria Group trades at 16.2x earnings, meaning investors pay $16.20 for every dollar of annual profit the company generates. This valuation sits 4.3 points below the Consumer Defensive sector median of 20.5x, placing MO in the 25th percentile among sector peers—indicating cheaper relative valuations than most competitors. The P/E ratio has remained flat at 16.2x over the last four quarters, showing no meaningful movement in either direction. While the below-average valuation might appear attractive, it likely reflects market concerns about the company's fundamentals rather than a genuine bargain, particularly given the cautious outlook on this stock. Investors should investigate why the market has assigned MO a lower multiple despite its defensive sector positioning before treating the discount as an opportunity.
Frequently Asked Questions
What does the P/E Ratio tell investors about MO?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
How does MO's P/E Ratio compare to its sector?
MO's P/E Ratio of 14.0x compares to a Consumer Defensive sector median of 14.0x, placing it in the 50th percentile.
Who are MO's closest peers by P/E Ratio?
The closest Consumer Defensive peers by P/E Ratio include: BTI (13.5x), BUD (13.1x), PM (22.6x), ABEV (3.2x), ADM (31.3x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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14.0x
Sector Median
14.0x
Sector Avg
19.5x
How MO's P/E Ratio compares to sector peers.
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