Is Altria Group, Inc. overvalued or undervalued?

As of 28 October 2021, the valuation grade for Altria Group, Inc. moved from very attractive to risky. The company is currently considered overvalued. Key ratios include a P/E ratio of 14, an EV to EBITDA of 14.84, and a PEG ratio of 0.59, which indicates potential growth relative to its price but is overshadowed by the negative book value reflected in its Price to Book Value of -44.76.
When compared to peers, Altria's P/E ratio of 14 is significantly lower than that of Philip Morris International, which stands at 48.87, highlighting a stark valuation disparity. Additionally, while Altria has a high dividend yield of 13.83%, its recent stock performance has outpaced the S&P 500, with a 1-year return of 32.25% compared to the index's 10.26%. This suggests that despite the attractive yield, the overall valuation metrics indicate that Altria is overvalued in the current market context.