Philip Morris International Inc. (PM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-9.8%

$187.56

vs $207.88 price

Levered DCF

$206.62

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

4.97

Safe zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.06×	26.57×	18.74×	17.39×	16.3×	16.04×	18.46×	13.12×
P/B	-24.97×	-15.92×	-13.01×	-17.51×	-14.65×	-10.26×	-11.43×	-8.33×
P/S	6.14×	4.94×	4.15×	4.94×	4.71×	4.49×	4.44×	3.5×
EV / EBITDA	15.68×	14.51×	14.27×	14.6×	12.27×	12.1×	13.45×	10.31×
Gross margin	67.1%	64.8%	63.3%	64.1%	68.1%	66.7%	64.7%	63.7%
Operating margin	36.6%	35.4%	32.9%	38.6%	41.3%	40.8%	35.3%	38.3%
Net margin	27.9%	18.6%	22.1%	28.5%	29.0%	28.1%	24.1%	26.7%
Current ratio	0.96×	0.88×	0.75×	0.72×	0.92×	1.1×	1.09×	1.13×
Debt / equity	-4.89×	-3.89×	-4.27×	-4.81×	-2.75×	-2.51×	-2.68×	-2.55×
Interest coverage	9.38×	7.6×	7.57×	15.95×	17.6×	16.1×	13.23×	13.26×
Dividend yield	3.5%	4.4%	5.5%	5.0%	5.1%	5.7%	5.4%	6.6%
Payout ratio	76.0%	116.5%	102.2%	86.3%	83.2%	91.4%	99.7%	87.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-113.5%	-59.9%	-69.4%	-101.0%	-90.1%	-64.1%	-62.1%	-63.5%
Return on invested capital	25.5%	25.4%	19.8%	23.3%	40.6%	32.1%	28.6%	32.0%
Return on assets	16.4%	11.4%	11.9%	14.7%	22.1%	18.0%	16.8%	19.9%
Free cash flow yield	4.3%	5.8%	5.4%	6.2%	7.6%	7.1%	7.0%	7.7%
Earnings yield	4.5%	3.8%	5.3%	5.8%	6.2%	6.2%	5.4%	7.6%
Enterprise value	$293.5B	$228.5B	$190.9B	$196.8B	$171.3B	$153.2B	$156.5B	$129B
Net debt / EBITDA	2.35×	2.63×	3.35×	2.96×	1.67×	1.92×	2.08×	2.01×
Cash conversion cycle (days)	245	196	233	241	242	308	286	272