MO & PM - Vaping Headline Risk Leads to Attractive Valuation in Tobacco Stocks

MO & PM - Vaping Headline Risk Leads to Attractive Valuation in Tobacco Stocks.

MO is $40 and PM is $72. Assuming regulatory risk is overrated and company can remain viable selling cigarettes and maintain pricing power 10+ years from now today’s valuation would lead to 12+% compound annual return even assuming 5% secular decline in cigarette consumption.

Fair Value for MO $55 and PM $90.