Stock Price & Analysis

Based on the analysis, PM stock is currently trading at a high valuation with a trailing P/E of 53.43 and a forward P/E of 18.31, indicating it may be overvalued. However, the company has a strong track record of returning capital to shareholders through dividends, with a dividend yield of 4.86%. The stock is trading above its 20, 50, and 200-day moving averages, and the MACD is positive, suggesting bullish momentum. However, the RSI_14 is neutral at 53.43, and the stock is near the upper Bollinger Band, indicating potential short-term overbought conditions. Considering these factors, it may be wise to hold PM stock for its dividend yield and stable performance, but avoid buying at current levels due to high valuation.

Philip Morris (PM) stock is predicted to reach $155 - $160 in 2025, driven by strong earnings momentum and growth in smoke-free products. The stock is currently trading near key Fibonacci resistance levels, with upside potential supported by its robust financial outlook.

The S1 support level for PM Stock is $151.06 ,The R1 resistant level for PM Stock is $158.13.

As of the end of day on 2025-04-01, the price of PM Stock was $158.99.

The target price for PM Stock according to analyst rating is 159.00, with the highest price target at 175.00 and the lowest at 120.00. Analysts have a Strong Buy rating on PM Stock overall.

The market cap of PM is $246.1B.

Analysis and Insights

To determine if Philip Morris International (PM) is overvalued, we analyze its financial metrics, analyst sentiment, and recent news.

Valuation Metrics:

PM's valuation metrics show a rising trend:

• PE Ratio: Increased from 17.92 in Q1 2024 to 20.03 in Q4 2024.
• EV/EBITDA: Rose from 13.05 to 14.97 over the same period.
• PS Ratio: Grew from 3.96 to 4.94.
• Dividend Yield: Stable at 4.3%-5.64%.

These metrics suggest a premium valuation compared to historical levels.

Analyst Sentiment:

Recent analyst ratings are mixed:

• Buy/Strong Buy: Four analysts with targets up to $175.
• Strong Sell: One analyst with a $105 target.

This divergence indicates varying market expectations.

Recent News and Developments:

• Debt Reduction: Fitch revised PM's outlook to stable, citing progress in debt reduction and cash flow recovery.
• Legal Resolution: Canadian subsidiary resolved tobacco-related claims, removing significant liabilities.
• Smoke-Free Growth: Smoke-free products contributed 39% of 2024 revenue, with a target of 66% by 2030.

These factors support PM's valuation despite challenges like currency headwinds and regulatory risks.

Conclusion:

While PM's valuation metrics are elevated, its strong fundamentals, debt reduction, and growth in smoke-free products justify its current price. Analyst sentiment is mixed, but the company's strategic initiatives and stable outlook suggest it is fairly valued.

Philip Morris International Inc. is an international tobacco company. The Company's product portfolio primarily consists of cigarettes and smoke-free products, which include heat-not-burn, vapor, and oral nicotine products. The Company’s segments include Europe Region; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA); East Asia, Australia, and PMI Duty Free Region (EA, AU & PMI DF); Americas Region; Swedish Match, and Wellness and Healthcare (W&H), which includes the operating of Vectura Fertin Pharma business. The Company's brands include Marlboro, HEETS, IQOS, IQOS ILUMA, TEREA, and ZYN. The Company’s IQOS smoke-free product brand portfolio includes heated tobacco and nicotine-containing vapor products. Its smoke-free platform (Platform 1) uses a precisely controlled heating device into which a specially designed and proprietary tobacco unit is inserted and heated to generate an aerosol.

Philip Morris International (PM) stock is predicted to reach $160 by 2030, driven by strong growth in smoke-free products like IQOS and ZYN, as well as continued market share expansion. The stock's technical setup, including a bullish MACD and Fibonacci resistance levels, supports this upside potential. Fundamental strength, including a 100% rating from Validea's Multi-Factor Investor model, further reinforces this price target.

PM has a total of 82700 employees.