The U.S. tobacco giant, which owns a 35 per cent stake in the e-cigarette maker, said in its third-quarter earnings release that it now values the investment at US$1.6 billion as of September 30. (The Logic)
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The U.S. tobacco giant, which owns a 35 per cent stake in the e-cigarette maker, said in its third-quarter earnings release that it now values the investment at US$1.6 billion as of September 30. (The Logic)
Talking point: Altria’s initial investment was US$12.8 billion at a US$38-billion valuation. It has since downgraded that multiple times. Before Friday’s earnings release, it last valued the company at US$12 billion. The new figure suggests Altria now believes the total value of the company is below US$5 billion. Altria CEO Billy Gifford said during a conference call with analysts that the company “came forward with our best estimate” on Juul’s worth based on future cash flow, industry size and regulatory-hurdle projections. Altria’s figure is less than half of what Juul believes to be its current value. Juul CEO K.C. Crosthwaite told employees Thursday its valuation was about US$10 billion, or US$67.64 per share.
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