Philip Morris International Inc. (PM) Stock Valuation — PE Analysis
Tobacco · NYSE
Current Price
$184.30
PE Ratio (TTM)
26.0x
Intrinsic Value
$222.4
+17.1% margin of safety
COMPETITIVE MOAT
↑Global Brand Strength
PMI's established brands like Marlboro possess significant global recognition and loyalty, creating a barrier to entry for new competitors in traditional tobacco.
↑Distribution Network
An extensive and entrenched global distribution network allows PMI to efficiently reach consumers across diverse markets, a difficult feat for rivals to replicate.
↑Regulatory Expertise
Navigating complex and evolving global tobacco regulations requires deep expertise and established relationships, which PMI has cultivated over decades.
INVESTMENT RISKS
↓Illicit Trade Growth
The rising illicit cigarette market in the EU, exceeding 10%, directly erodes PMI's sales and profitability, indicating a loss of market control.
↓Profit Forecast Downgrades
Recent profit outlook cuts, citing cost pressures and impairments, highlight vulnerability to external economic factors and internal operational challenges.
↓Weak Pricing Power
The inability to fully pass on costs due to weak pricing power, as mentioned by the CEO, suggests diminishing influence over market dynamics.
Base case
PM base case PE valuation
A base case PE valuation for PM estimates a fair value of about $222.4 per share, against a current price of $184.3. The model assumes 10.2% annual earnings growth, a 26x target PE multiple, and a 10% discount rate.
Intrinsic Value
$222.4
Margin of safety
+17.1%
Expected annual return
+3.8%
Base case assumptions: 10.2% annual earnings growth, 26x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the PM PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Philip Morris International Inc. respond.
Open PE Calculator for PMCompany Overview
Philip Morris International Inc. functions as a prominent tobacco enterprise, actively working toward a smoke-free future. The company is strategically diversifying its long-term product range to incorporate items beyond traditional tobacco and nicotine. Its primary business involves both conventional cigarettes and an expanding array of smoke-free alternatives, such as innovative heat-not-burn devices, vapor products, and oral nicotine solutions. These offerings are distributed in markets worldwide, with the exception of the United States. The smoke-free portfolio includes brands like HEETS (encompassing Creations, Dimensions, Marlboro variants), Parliament HeatSticks, and TEREA, in addition to KT&G-licensed brands Fiit and Miix. For conventional cigarettes, the company sells internationally recognized brands such as Marlboro, Parliament, Bond Street, Chesterfield, L&M, Lark, and Philip Morris. Regionally, it also owns major cigarette brands like Dji Sam Soe, Sampoerna A, and Sampoerna U in Indonesia, and Fortune and Jackpot in the Philippines. PMI's smoke-free innovations are currently available across 71 global markets. Established in 1987, Philip Morris International Inc. is headquartered in New York, New York.
Financial Metrics — PM PE Stock Valuation Data
PE Ratio (TTM)
26.0x
PEG Ratio
0.56
Earnings Yield
3.85%
ROE (TTM)
-105.3%
Revenue/Share (TTM)
$26.55
Dividend Yield
3.13%
Debt/Equity
n/m
Frequently Asked Questions
What is the PE ratio of PM?
The trailing twelve-month PE ratio of PM reflects how much investors pay per dollar of Philip Morris International Inc.'s earnings. This metric is most useful when compared to Tobacco peers and the company's own historical range.
Is PM overvalued based on PE ratio?
PM's PE of 26.0x combined with a PEG ratio of 0.56 provides a growth-adjusted perspective. A PEG below 1.0 suggests PM may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Tobacco, a DCF analysis may be more appropriate.
How do I value PM stock using PE ratio?
To value Philip Morris International Inc. using PE: (1) Compare the current PE (26.0x) against the Tobacco median to assess relative pricing, (2) check the PEG ratio (0.56) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of PM?
PM's PEG ratio is 0.56, calculated by dividing the PE ratio (26.0x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for PM stock valuation?
PE ratio gives a quick relative read — how PM is priced versus Tobacco peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See PM DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Defensive valuationsP/E and DCF value PM with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.