Philip Morris International manufactures and sells cigarettes, other tobacco products, and other nicotine-containing products. It sells its products in approximately 180 countries in the European Union, Eastern Europe, the Middle East, Africa, Asia, Latin America, and Canada. The company was founded in 1987 and is based in New York, New York.
PM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Philip Morris International Inc. To summarize, we found that Philip Morris International Inc ranked in the 36th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 28.33%. In terms of the factors that were most noteworthy in this DCF analysis for PM, they are:
As a business, PM is generating more cash flow than 91.09% of positive cash flow stocks in the Consumer Defensive.
Philip Morris International Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 19.18% of tickers in our DCF set.
PM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 19.18% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CLX, LW, MDLZ, FLO, and SPB can be thought of as valuation peers to PM, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Altria’s (MO) share price has fallen in sympathy with the rest of the market this month. As seen below, it appears that the investment community is pricing more risk into Altria, as the shares have fallen by a much wider margin than the S&P 500 (SPY). (Source: YCharts) I believe...
Philip Morris International (PM) is one out of three excellent tobacco companies, which include Altria (MO) and British American Tobacco (BTI) as well. Together, they represent an exposure of almost 3% of my portfolio, and together with international tobacco companies, I have a 3.8% exposure to tobacco overall. I'm perfectly...
André Calantzopoulos, CEO of Philip Morris International (PMI) (NYSE: PM), today delivered high-level remarks at the 2020 Concordia Annual Summit. Calantzopoulos discussed the impact that uncertainty, polarization, hyperpartisanship, and ideology are having on international efforts to overcome pressing global issues. He called for science to be protected from politicization and highlighted the importance of developing open dialogues based on factual scientific objectivity. Calantzopoulos shared PMI’s belief that with the right regulatory encouragement and support from civil society, cigarette sales can end within 10 to 15 years in many countries.