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Shares of Philip Morris Rank the Highest in Terms of EV/EBITDA Ratio in the Tobacco Industry (PM, MO, VGR, RAI, UVV)

By David Diaz

Below are the three companies in the Tobacco industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Philip Morris ranks highest with a an EV/EBITDA ratio of 18.64. Altria Group is next with a an EV/EBITDA ratio of 17.85. Vector Group ranks third highest with a an EV/EBITDA ratio of 12.88.

Reynolds American follows with a an EV/EBITDA ratio of 9.93, and Universal rounds out the top five with a an EV/EBITDA ratio of 7.69.

SmarTrend recommended that its subscribers protect gains by selling shares of Universal on May 18th, 2017 by issuing a Downtrend alert when the shares were trading at $69.57. Since that call, shares of Universal have fallen 4.6%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest ev/ebitda ratio philip morris altria group vector group Reynolds American Universal

Ticker(s): PM MO VGR RAI UVV