Philip Morris International Inc. (PM) Stock Valuation — PE Analysis
Tobacco · NYSE
Current Price
$198.44
PE Ratio (TTM)
28.5x
Intrinsic Value
$231.87
+14.4% margin of safety
COMPETITIVE MOAT
↑Brand Loyalty & Pricing Power
PMI commands strong brand loyalty for its traditional tobacco products. This allows for significant pricing power, enabling them to pass on costs to consumers.
↑Reduced-Risk Product Transition
The successful pivot to reduced-risk products like Zyn nicotine pouches, with FDA modified-risk claims, creates a new growth avenue and potential switching costs.
↑Global Distribution Network
PMI possesses an extensive and established global distribution network. This infrastructure is difficult and costly for new entrants to replicate.
INVESTMENT RISKS
↓Litigation & Health Concerns
Ongoing litigation and persistent health concerns associated with tobacco and nicotine products pose significant financial and reputational risks.
↓Competition in Reduced-Risk Products
The rapidly evolving reduced-risk product market faces intense competition, potentially eroding market share and profitability.
↓Geopolitical & Economic Instability
Operating in diverse international markets exposes PMI to currency fluctuations, political instability, and economic downturns.
Base case
PM base case PE valuation
At a current price of $198.44, the base case PE valuation puts PM fair value near $231.87 per share. That figure assumes 9.5% yearly earnings growth, a target PE multiple of 29x, and a 10% discount rate.
Intrinsic Value
$231.87
Margin of safety
+14.4%
Expected annual return
+3.2%
Base case assumptions: 9.5% annual earnings growth, 29x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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)
28.5x
PEG Ratio
0.90
Earnings Yield
3.51%
ROE (TTM)
-112.2%
Revenue/Share (TTM)
$27.22
Dividend Yield
2.96%
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 28.5x combined with a PEG ratio of 0.90 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the 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 (28.5x) against the Tobacco median to assess relative pricing, (2) check the PEG ratio (0.90) 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 0.90, calculated by dividing the PE ratio (28.5x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.