Philip Morris International Inc. (PM) Stock Valuation — PE Analysis
Tobacco · NYSE
Current Price
$202.62
PE Ratio (TTM)
29.6x
Intrinsic Value
$227.86
+11.1% margin of safety
COMPETITIVE MOAT
↑Global Brand Recognition & Loyalty
PMI's established cigarette brands possess strong global recognition. This fosters enduring consumer loyalty, creating a significant barrier for new entrants in traditional markets.
↑Dominant Distribution Networks
The company operates extensive and deeply entrenched distribution networks worldwide. This logistical advantage ensures product availability and market penetration, difficult for competitors to replicate.
↑Smoke-Free Product Innovation Investment
Significant R&D investment in reduced-risk products like IQOS creates a technological lead. This positions PMI to capture future market share as regulations shift away from traditional cigarettes.
INVESTMENT RISKS
↓Transition to Smoke-Free Products
The shift to smoke-free products is capital intensive and faces uncertain consumer adoption and regulatory hurdles. Failure to effectively transition could erode future revenue streams.
↓Geopolitical and Economic Instability
PMI operates in diverse international markets, making it susceptible to currency fluctuations, political unrest, and economic downturns in key regions.
↓Litigation and Health-Related Claims
The company remains exposed to ongoing litigation and potential future claims related to the health effects of its products, which could result in significant financial liabilities.
Base case
PM base case PE valuation
At a current price of $202.62, the base case PE valuation puts PM fair value near $227.86 per share. That figure assumes 9.1% yearly earnings growth, a target PE multiple of 29.58x, and a 10% discount rate.
Intrinsic Value
$227.86
Margin of safety
+11.1%
Expected annual return
+2.4%
Base case assumptions: 9.1% annual earnings growth, 29.58x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-27.
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)
29.6x
PEG Ratio
1.24
Earnings Yield
3.38%
ROE (TTM)
-119.7%
Revenue/Share (TTM)
$27.60
Dividend Yield
2.97%
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 29.6x combined with a PEG ratio of 1.24 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with 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 (29.6x) against the Tobacco median to assess relative pricing, (2) check the PEG ratio (1.24) 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 1.24, calculated by dividing the PE ratio (29.6x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with 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 2026-10-27. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.