Is Philip Morris International Inc. overvalued?

In our latest published analysis dated 2026-05-08, PM looks meaningfully undervalued. The price recorded at analysis is USD 171 versus a composite fair-value midpoint of USD 222 (range USD 173–USD 271), implying roughly 29.8% upside to the midpoint at that date.

What is PM's fair value?

Our latest published report, analyzed 2026-05-08, gives PM a composite fair-value range of USD 173–USD 271, with a midpoint of USD 222. The range is triangulated across multiple valuation models and weighted by reliability for Philip Morris International Inc.'s archetype; it is a dated research output, not a live price.

Our latest published rating for PM, analyzed 2026-05-08, is Strong Buy with a confidence score of 88/100. Philip Morris International Inc. looks meaningfully undervalued at the analysis-date price of USD 171 versus a fair-value midpoint of USD 222. This is research for educational purposes, not personalized investment advice.

What are the biggest risks for PM?

The top risks our latest published report dated 2026-05-08 flags for Philip Morris International Inc. are: Global Alternative Ban; Accelerated Combustible Decline; Punitive Alternative Taxation.

Our latest published rating for PM, analyzed 2026-05-08, is Strong Buy, with a confidence score of 88/100 and a moat score of 9/10. It reflects the composite fair-value range (USD 173–USD 271) versus the price recorded at analysis (USD 171).

What archetype is PM?

In the latest published report analyzed 2026-05-08, Philip Morris International Inc. is classified as a mature compounder stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for PM.

What are PM's margins?

Philip Morris International Inc. (PM)'s margin set covers gross margin, operating margin, net margin, and free-cash-flow margin. The five-year trajectory is plotted so the reader can separate cyclical noise from secular trend.

Are PM's margins expanding?

Margin expansion or compression is read against the revenue base: if operating margin expands while revenue grows, that is operating leverage. If gross margin compresses, the cause (mix shift, input costs, pricing) is annotated in the numbers analysis.

How do PM's margins compare to peers?

Peer-relative margin context lives on the parent peers tab, which sets PM's gross, operating, and net margins against four to five named peers from the same archetype and sector.

What is PM's free cash flow margin?

FCF margin is reported alongside operating margin so the reader can spot cases where capex intensity changes the cash-conversion read even when reported profitability is steady.

PM margins: gross, operating, net, free cash flow

Latest published researchAnalyzed 2026-05-08; report age: historical; sources: unverified. Age and source freshness are disclosed but do not remove the latest published report from discovery or indexing. Prices and valuation figures are the analysis-date snapshot, not a live quote.

Direct answer

Philip Morris International is executing a successful transition from combustible tobacco to smoke-free products (IQOS, ZYN), sustaining its mature compounder status through strong pricing power and high ROIC. Fair value range: low $173, high $271, with mid-point at $222.

MARGINS FAQ

PM margins questions

Philip Morris International Inc. (PM)'s margin set covers gross margin, operating margin, net margin, and free-cash-flow margin. The five-year trajectory is plotted so the reader can separate cyclical noise from secular trend.

FAQ

PM — frequently asked questions

In our latest published analysis dated 2026-05-08, PM looks meaningfully undervalued. The price recorded at analysis is USD 171 versus a composite fair-value midpoint of USD 222 (range USD 173–USD 271), implying roughly 29.8% upside to the midpoint at that date.

Metric	Current	Trigger threshold
Consecutive quarters of missing smoke-free revenue and volume targets.	Monitor	Deterioration versus the report thesis
Unfavorable shifts in excise tax parity in key European or Asian markets.	Monitor	Deterioration versus the report thesis
Erosion of legacy pricing power evidenced by consecutive margin compression.	Monitor

Line item	2021-12-31	2022-12-31	2023-12-31	2024-12-31	2025-12-31	Trend
Revenue	—	$31.76B	$35.17B+10.7%	$37.88B+7.7%	$40.65B+7.3%	+6.4%
Gross profit	—	$20.36B	$22.28B	$24.55B	$27.28B	+7.6%
Operating income	—	$12.25B	$12.22B	$13.40B	$14.93B	+5.1%
Net income	—	$9.05B	$7.81B-13.7%	$7.06B-9.6%	$11.35B+60.8%	+5.8%
EPS (diluted)	$5.83	$5.81	$5.02	$4.53	$7.26	+5.6%
EBITDA	—	$13.48B	$13.37B	$15.75B	$17.46B	+6.7%
R&D	—	—	—	—	—	—
SG&A	—	$8.11B	$10.06B	$11.15B	$12.35B	+11.1%

PM margins questions

PM — frequently asked questions

PM Philip Morris International Inc. fair value $173–$271

§1 Executive summary

Names readers of PM also follow

§2 Bear case

Global Alternative Ban

Accelerated Combustible Decline

Punitive Alternative Taxation

§3 Financial history

Income statement — last six periods

Quality scores

Numbers analysis

Read the full analysis — 11 more sections.