Tobacco · NYSE
Current Price
$162.71
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Philip Morris International Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Philip Morris International Inc. operates as a tobacco company working to delivers a smoke-free future and evolving portfolio for the long-term to include products outside of the tobacco and nicotine sector. The company's product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, vapor, and oral nicotine products that are sold in markets outside the United States. The company offers its smoke-free products under the HEETS, HEETS Creations, HEETS Dimensions, HEETS Marlboro, HEETS FROM MARLBORO, Marlboro Dimensions, Marlboro HeatSticks, Parliament HeatSticks, and TEREA brands, as well as the KT&G-licensed brands, Fiit, and Miix. It also sells its products under the Marlboro, Parliament, Bond Street, Chesterfield, L&M, Lark, and Philip Morris brands. In addition, the company owns various cigarette brands, such as Dji Sam Soe, Sampoerna A, and Sampoerna U in Indonesia; and Fortune and Jackpot in the Philippines. The company sells its smoke-free products in 71 markets. Philip Morris International Inc. was incorporated in 1987 and is headquartered in New York, New York.
ROIC (TTM)
24.3%
ROE (TTM)
-105.3%
FCF Yield
4.21%
Based on trailing twelve-month data, PM shows a free cash flow per share of N/A and a ROIC of 24.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 4.21% are important context metrics when evaluating PM's stock valuation relative to peers.
The intrinsic value of PM depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether PM is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $162.71. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Philip Morris International Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Tobacco industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting PM's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Philip Morris International Inc., this means projecting how much free cash flow the Tobacco will produce over the next 5-10 years, then discounting those amounts to today's dollars. PM's ROIC of 24.3% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For PM, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
