The Valuation of JUUL Continues to Fall

The Valuation of JUUL Falls, Hits Altria

Altria Group, Inc. continues to see the value of JUUL Labs plummet. On Oct. 30, 2020, Altria Group took a third-quarter hit of $2.6 billion on its investment in JUUL Labs, Inc. This further diminishes the value of its initial $12.8 billion stake in the e-cigarette maker as it continues to face increased regulatory scrutiny. Currently, Altria Group’s stake in JUUL is currently valued at $1.6 billion, a fraction of the original $38 billion that it was worth when Altria first announced its 35 percent stake in the e-cigarette maker back in December 2018.

So far, Altria has taken an $11.2 billion write down in its stake in JUUL. The company first began seeing the value of JUUL fall when more scrutiny and regulations were imposed after a noticeable uptick in vaping amongst teens in the U.S. JUUL has pulled out of certain markets and cut its own valuation down to $10 billion from $12 billion. Altria’s own valuation, however, conflicts with this amount. According to reporting by Reuters, Altria’s valuation of its stake in JUUL implies that it sees the e-cigarette maker as being valued at about $4.6 billion, far less than JUUL’s own valuation. Altria took into account the state of the U.S. e-cigarette and vapor industries as well as JUUL’s international prospects when formulating its valuation.