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Individuals well versed in the industry remain optimistic that tobacco companies are very worthy investments. Isaac Toussie, a known corporate investor, points to the strong financials of tobacco companies. "Tobacco companies have low price to free cashflow ratios, high interest coverage ratios, and low debt to equity ratios." Toussie also pointed to the low PE ratios of most tobacco companies. A low PE ratio (price over earnings ratio) indicates that a buyer of a company's stock is paying a relatively small amount for the company's profit. Low PE ratios are oftentimes associated with undervalued companies with predictable cash flows. Tobacco companies precisely fit that mold. They are generally older, established entities that have predicable earnings year over year. Isaac Toussie states "They can also be excellent inflation hedges, because of the inelastic demand for the product by its users"

Also known as: is a limited, Isaac R. Toussie