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 is PM's implied growth rate?

Reverse DCF for Philip Morris International Inc. (PM) backs out the revenue or earnings growth rate the current share price implies, holding terminal value, margin, and discount-rate assumptions constant.

Is PM's implied growth realistic?

We compare the implied rate to our own forecast deceleration curve and to the historical five-year actual. When the implied rate exceeds the realistic ceiling, the price is pricing in optimism the business has not yet demonstrated.

What discount rate is used for PM?

Reverse DCF uses cost of equity (Ke), not WACC, to stay consistent with the EPS-based forward valuation models. Ke is derived from CAPM with adjusted beta; the strict and moderate variants are documented in the assumption ledger.

How does reverse DCF inform a buy or sell call?

When the implied growth rate is below our forecast, the market is underpricing the business; when it is above, the market is overpricing. The reverse-DCF read is one of four lenses that feed the composite fair-value range and the rating band.

PM reverse DCF: implied growth at the report price

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.

REVERSE DCF FAQ

PM reverse dcf questions

Reverse DCF for Philip Morris International Inc. (PM) backs out the revenue or earnings growth rate the current share price implies, holding terminal value, margin, and discount-rate assumptions constant.

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 reverse dcf 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.