PM Valuation

Philip Morris International Inc

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163.220

-4.18(-2.497%)1D

Overview
Forecast
Valuation
Earnings

PM Relative Valuation

PM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PM is overvalued; if below, it's undervalued.

Historical Valuation

Philip Morris International Inc (PM) is now in the Overvalued zone, suggesting that its current forward PE ratio of 20.91 is considered Overvalued compared with the five-year average of 16.59. The fair price of Philip Morris International Inc (PM) is between 123.93 to 153.09 according to relative valuation methord. Compared to the current price of 163.22 USD , Philip Morris International Inc is Overvalued By 6.62%.

Relative Value

Fair Zone

123.93-153.09

Current Price：163.22

6.62%

Overvalued

20.91

Trailing

Forward

16.24

EV/EBITDA

Philip Morris International Inc. (PM) has a current EV/EBITDA of 16.24. The 5-year average EV/EBITDA is 13.29. The thresholds are as follows: Strongly Undervalued below 9.91, Undervalued between 9.91 and 11.60, Fairly Valued between 14.98 and 11.60, Overvalued between 14.98 and 16.67, and Strongly Overvalued above 16.67. The current Forward EV/EBITDA of 16.24 falls within the Overvalued range.

17.55

EV/EBIT

Philip Morris International Inc. (PM) has a current EV/EBIT of 17.55. The 5-year average EV/EBIT is 14.14. The thresholds are as follows: Strongly Undervalued below 10.64, Undervalued between 10.64 and 12.39, Fairly Valued between 15.89 and 12.39, Overvalued between 15.89 and 17.64, and Strongly Overvalued above 17.64. The current Forward EV/EBIT of 17.55 falls within the Overvalued range.

6.07

Philip Morris International Inc. (PM) has a current PS of 6.07. The 5-year average PS is 4.70. The thresholds are as follows: Strongly Undervalued below 3.27, Undervalued between 3.27 and 3.99, Fairly Valued between 5.41 and 3.99, Overvalued between 5.41 and 6.12, and Strongly Overvalued above 6.12. The current Forward PS of 6.07 falls within the Overvalued range.

19.76

P/OCF

Philip Morris International Inc. (PM) has a current P/OCF of 19.76. The 5-year average P/OCF is 14.75. The thresholds are as follows: Strongly Undervalued below 10.08, Undervalued between 10.08 and 12.41, Fairly Valued between 17.08 and 12.41, Overvalued between 17.08 and 19.41, and Strongly Overvalued above 19.41. The current Forward P/OCF of 19.76 falls within the Strongly Overvalued range.

86.71

P/FCF

Philip Morris International Inc. (PM) has a current P/FCF of 86.71. The 5-year average P/FCF is 21.18. The thresholds are as follows: Strongly Undervalued below -20.53, Undervalued between -20.53 and 0.33, Fairly Valued between 42.03 and 0.33, Overvalued between 42.03 and 62.89, and Strongly Overvalued above 62.89. The current Forward P/FCF of 86.71 falls within the Strongly Overvalued range.

Philip Morris International Inc (PM) has a current Price-to-Book (P/B) ratio of -21.78. Compared to its 3-year average P/B ratio of -17.53 , the current P/B ratio is approximately 24.24% higher. Relative to its 5-year average P/B ratio of -15.85, the current P/B ratio is about 37.35% higher. Philip Morris International Inc (PM) has a Forward Free Cash Flow (FCF) yield of approximately 3.46%. Compared to its 3-year average FCF yield of 5.41%, the current FCF yield is approximately -36.19% lower. Relative to its 5-year average FCF yield of 6.07% , the current FCF yield is about -43.11% lower.

-21.78

P/B

Median3y

-17.53

Median5y

-15.85

3.46

FCF Yield

Median3y

5.41

Median5y

6.07

Competitors Valuation Multiple

The average P/S ratio for PM's competitors is 4.75, providing a benchmark for relative valuation. Philip Morris International Inc Corp (PM) exhibits a P/S ratio of 6.07, which is 27.84% above the industry average. Given its robust revenue growth of 7.10%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

PM.N

Philip Morris International Inc

British American Tobacco plc

3.43

120.63B

TPB.N

Turning Point Brands Inc

3.92

25.11%

1.75B

Performance Decomposition

Market capitalization of PM increased by 39.44% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 26.70 to 31.05.

The secondary factor is the P/E Change, contributed 16.05%to the performance.

Overall, the performance of PM in the past 1 year is driven by Margin Expansion. Which is more sustainable.

7.10%

9.47B → 10.14B

Revenue Growth

16.29%

26.70 → 31.05

Margin Expansion

16.05%

27.36 → 31.76

P/E Change

39.44%