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 19.73 is considered Overvalued compared with the five-year average of 16.96. The fair price of Philip Morris International Inc (PM) is between 124.90 to 154.31 according to relative valuation methord. Compared to the current price of 155.74 USD , Philip Morris International Inc is Overvalued By 0.93%.
Relative Value
Fair Zone
124.90-154.31
Current Price：155.74
0.93%
Overvalued
19.73
PE
1Y
3Y
5Y
16.03
EV/EBITDA
Philip Morris International Inc. (PM) has a current EV/EBITDA of 16.03. The 5-year average EV/EBITDA is 13.61. The thresholds are as follows: Strongly Undervalued below 10.30, Undervalued between 10.30 and 11.96, Fairly Valued between 15.27 and 11.96, Overvalued between 15.27 and 16.92, and Strongly Overvalued above 16.92. The current Forward EV/EBITDA of 16.03 falls within the Overvalued range.
16.92
EV/EBIT
Philip Morris International Inc. (PM) has a current EV/EBIT of 16.92. The 5-year average EV/EBIT is 14.47. The thresholds are as follows: Strongly Undervalued below 11.01, Undervalued between 11.01 and 12.74, Fairly Valued between 16.20 and 12.74, Overvalued between 16.20 and 17.93, and Strongly Overvalued above 17.93. The current Forward EV/EBIT of 16.92 falls within the Overvalued range.
5.80
PS
Philip Morris International Inc. (PM) has a current PS of 5.80. The 5-year average PS is 4.81. The thresholds are as follows: Strongly Undervalued below 3.36, Undervalued between 3.36 and 4.09, Fairly Valued between 5.54 and 4.09, Overvalued between 5.54 and 6.27, and Strongly Overvalued above 6.27. The current Forward PS of 5.80 falls within the Overvalued range.
17.69
P/OCF
Philip Morris International Inc. (PM) has a current P/OCF of 17.69. The 5-year average P/OCF is 15.09. The thresholds are as follows: Strongly Undervalued below 10.35, Undervalued between 10.35 and 12.72, Fairly Valued between 17.46 and 12.72, Overvalued between 17.46 and 19.83, and Strongly Overvalued above 19.83. The current Forward P/OCF of 17.69 falls within the Overvalued range.
18.84
P/FCF
Philip Morris International Inc. (PM) has a current P/FCF of 18.84. The 5-year average P/FCF is 22.51. The thresholds are as follows: Strongly Undervalued below -21.68, Undervalued between -21.68 and 0.42, Fairly Valued between 44.60 and 0.42, Overvalued between 44.60 and 66.69, and Strongly Overvalued above 66.69. The current Forward P/FCF of 18.84 falls within the Historic Trend Line -Fairly Valued range.
Philip Morris International Inc (PM) has a current Price-to-Book (P/B) ratio of -22.86. Compared to its 3-year average P/B ratio of -18.20 , the current P/B ratio is approximately 25.61% higher. Relative to its 5-year average P/B ratio of -16.67, the current P/B ratio is about 37.15% higher. Philip Morris International Inc (PM) has a Forward Free Cash Flow (FCF) yield of approximately 4.06%. Compared to its 3-year average FCF yield of 5.02%, the current FCF yield is approximately -19.20% lower. Relative to its 5-year average FCF yield of 5.84% , the current FCF yield is about -30.54% lower.
-22.86
P/B
Median3y
-18.20
Median5y
-16.67
4.06
FCF Yield
Median3y
5.02
Median5y
5.84
Competitors Valuation Multiple
The average P/S ratio for PM's competitors is 4.56, providing a benchmark for relative valuation. Philip Morris International Inc Corp (PM) exhibits a P/S ratio of 5.80, which is 27.21% above the industry average. Given its robust revenue growth of 9.42%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PM increased by 19.17% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 9.91B to 10.85B.
The secondary factor is the P/E Change, contributed 7.07%to the performance.
Overall, the performance of PM in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is Philip Morris International Inc (PM) currently overvalued or undervalued?
Philip Morris International Inc (PM) is now in the Overvalued zone, suggesting that its current forward PE ratio of 19.73 is considered Overvalued compared with the five-year average of 16.96. The fair price of Philip Morris International Inc (PM) is between 124.90 to 154.31 according to relative valuation methord. Compared to the current price of 155.74 USD , Philip Morris International Inc is Overvalued By 0.93% .
What is Philip Morris International Inc (PM) fair value?
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. The fair price of Philip Morris International Inc (PM) is between 124.90 to 154.31 according to relative valuation methord.
How does PM's valuation metrics compare to the industry average?
The average P/S ratio for PM's competitors is 4.56, providing a benchmark for relative valuation. Philip Morris International Inc Corp (PM) exhibits a P/S ratio of 5.80, which is 27.21% above the industry average. Given its robust revenue growth of 9.42%, this premium appears unsustainable.
What is the current P/B ratio for Philip Morris International Inc (PM) as of Jan 07 2026?
As of Jan 07 2026, Philip Morris International Inc (PM) has a P/B ratio of -22.86. This indicates that the market values PM at -22.86 times its book value.
What is the current FCF Yield for Philip Morris International Inc (PM) as of Jan 07 2026?
As of Jan 07 2026, Philip Morris International Inc (PM) has a FCF Yield of 4.06%. This means that for every dollar of Philip Morris International Inc’s market capitalization, the company generates 4.06 cents in free cash flow.
What is the current Forward P/E ratio for Philip Morris International Inc (PM) as of Jan 07 2026?
As of Jan 07 2026, Philip Morris International Inc (PM) has a Forward P/E ratio of 19.73. This means the market is willing to pay $19.73 for every dollar of Philip Morris International Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Philip Morris International Inc (PM) as of Jan 07 2026?
As of Jan 07 2026, Philip Morris International Inc (PM) has a Forward P/S ratio of 5.80. This means the market is valuing PM at $5.80 for every dollar of expected revenue over the next 12 months.