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 Fair zone, suggesting that its current forward PE ratio of 18.28 is considered Fairly compared with the five-year average of 16.89. The fair price of Philip Morris International Inc (PM) is between 120.52 to 150.76 according to relative valuation methord.
Relative Value
Fair Zone
120.52-150.76
Current Price：148.58
Fair
18.28
PE
1Y
3Y
5Y
Trailing
Forward
15.26
EV/EBITDA
Philip Morris International Inc. (PM) has a current EV/EBITDA of 15.26. The 5-year average EV/EBITDA is 13.54. The thresholds are as follows: Strongly Undervalued below 10.23, Undervalued between 10.23 and 11.88, Fairly Valued between 15.20 and 11.88, Overvalued between 15.20 and 16.86, and Strongly Overvalued above 16.86. The current Forward EV/EBITDA of 15.26 falls within the Overvalued range.
16.15
EV/EBIT
Philip Morris International Inc. (PM) has a current EV/EBIT of 16.15. The 5-year average EV/EBIT is 14.40. The thresholds are as follows: Strongly Undervalued below 10.94, Undervalued between 10.94 and 12.67, Fairly Valued between 16.13 and 12.67, Overvalued between 16.13 and 17.87, and Strongly Overvalued above 17.87. The current Forward EV/EBIT of 16.15 falls within the Overvalued range.
5.49
PS
Philip Morris International Inc. (PM) has a current PS of 5.49. The 5-year average PS is 4.79. The thresholds are as follows: Strongly Undervalued below 3.35, Undervalued between 3.35 and 4.07, Fairly Valued between 5.51 and 4.07, Overvalued between 5.51 and 6.23, and Strongly Overvalued above 6.23. The current Forward PS of 5.49 falls within the Historic Trend Line -Fairly Valued range.
16.74
P/OCF
Philip Morris International Inc. (PM) has a current P/OCF of 16.74. The 5-year average P/OCF is 15.02. The thresholds are as follows: Strongly Undervalued below 10.30, Undervalued between 10.30 and 12.66, Fairly Valued between 17.39 and 12.66, Overvalued between 17.39 and 19.75, and Strongly Overvalued above 19.75. The current Forward P/OCF of 16.74 falls within the Historic Trend Line -Fairly Valued range.
19.05
P/FCF
Philip Morris International Inc. (PM) has a current P/FCF of 19.05. The 5-year average P/FCF is 22.45. The thresholds are as follows: Strongly Undervalued below -21.76, Undervalued between -21.76 and 0.35, Fairly Valued between 44.55 and 0.35, Overvalued between 44.55 and 66.65, and Strongly Overvalued above 66.65. The current Forward P/FCF of 19.05 falls within the Historic Trend Line -Fairly Valued range.
Philip Morris International Inc (PM) has a current Price-to-Book (P/B) ratio of -21.19. Compared to its 3-year average P/B ratio of -18.06 , the current P/B ratio is approximately 17.32% higher. Relative to its 5-year average P/B ratio of -16.47, the current P/B ratio is about 28.64% higher. Philip Morris International Inc (PM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.10%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.89% , the current FCF yield is about -100.00% lower.
-21.19
P/B
Median3y
-18.06
Median5y
-16.47
4.29
FCF Yield
Median3y
5.10
Median5y
5.89
Competitors Valuation Multiple
The average P/S ratio for PM's competitors is 3.63, providing a benchmark for relative valuation. Philip Morris International Inc Corp (PM) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 9.42%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PM increased by 23.46% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 24.16 to 26.91.
The secondary factor is the Revenue Growth, contributed 9.42%to the performance.
Overall, the performance of PM in the past 1 year is driven by P/E Change. Which is more unsustainable.
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