Below are the valuation targets for Altria Group (MO) over the next 10 years.
Our valuation targets for Altria Group (MO) in 2019 are:
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$89.88 (overvalued)
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$66.36 (fair value)
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$42.84 (undervalued)
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$30.24 (extreme undervalue)
The valuation targets for Altria Group (MO) are based on a dividend growth rate of 5.00% which is derived from the last quarterly dividend increase from $0.80 to $0.84 and applied to Edson Gould’s Altimeter. A graphical representation of the overvalued, fair value, and undervalued levels are below.
The above Altimeter translates into the following undervalued and overvalued ranges since 1970:
10-Year Targets
Observations
According to Value Line Investment Survey, Altria Group (MO) has an expected price range of $75-$100 by 2022-2024. On our end, we have a range from as low as $49.59 to as high as $114.71 in the same period of time.
Last updated: December 6, 2019
see also: March 2, 2019 posting