How Altria’s Valuation Multiple Compares to Its Peers

For our analysis, we’ve used a forward PE (price-to-earnings) multiple due to the high visibility of Altria Group’s (MO) earnings. A forward PE multiple is calculated by dividing the company’s stock price from analysts’ earnings estimate for the next four quarters. The two announcements from the FDA that it’s considering policies to restrict the use of flavors in tobacco products and focusing on developing a comprehensive policy to lower nicotine levels in cigarettes led to declines in Altria stock and valuation multiple.