What Can Lead To A 10% Downside In Altria’s Valuation In The Next Few Years?

-4.97%
Downside
50.51
Market
48.00
Trefis
MO: Altria logo
MO
Altria

The tobacco usage rates have been declining in the US for the past several years. Tobacco giant Altria (NYSE:MO) has also been a part of the campaign for smoking reduction, by funding a number of programs, which have been a great success. If instead of the 1% to 4% decline in the sales of cigarettes through 2022, as expected currently in our model, the cigarette consumption falls by 5%, it could lead to a ~10% downside to our valuation for Altria.

Altria Downside 1 Altria Downside 2

Have more questions on Altria? Have a look at the links below:

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Altria.
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