PM · Intrinsic value
Is Philip Morris International Inc. (PM) overvalued or undervalued?
Philip Morris International Inc. (PM) trades at the delayed market price of $202.33 a share. That price already implies revenue growth of 5.5% a year for 5 years. TickerWorth's fair value is $195.43 a share (priced within our range of $151.22 – $237.92). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is PM fairly valued?
- Fair value
- $195.43
- Market price
- $202.33
- Downside to fair value
- 3.4%
- Verdict
- Priced within our range of $151.22 – $237.92
Reverse DCF: Today's price implies revenue growth of 5.5% a year for 5 years; our model assumes 5.7% a year on average over the same horizon.
What is PM's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Consumer Defensive companies in US
Its strongest point: a profitable, high-quality business. Its weakest: looks expensive on the numbers.
- Value · 20 of 100
Cheaper than 20% of Consumer Defensive companies in US
- Price vs worth · 47 of 100
- Quality · 95 of 100
More profitable than 95% of Consumer Defensive companies in US
- Financial health · 45 of 100
Financially stronger than 45% of Consumer Defensive companies in US
- Growth · 58 of 100
Growing faster than 58% of Consumer Defensive companies in US
- Momentum · 91 of 100
Outperformed 91% of Consumer Defensive companies in US over the past year
Confidence: High confidence · Scored
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PM DCF valuation, input by input
TickerWorth's fair value for Philip Morris International Inc. (PM) is $195.43 a share, against the delayed market price of $202.33 (priced within our range of $151.22 – $237.92). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts Philip Morris International Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 6.9%, with a long-run terminal growth rate of 2.5%. About 82% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 5.5% annual revenue growth for PM. Our base case instead compounds to about 5.7% a year over the same forecast, so the market's implied growth is broadly in line with our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, PM's modeled DCF value ranges from about $126.74 to $446.39 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Philip Morris International Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of PM's intrinsic value. Figures update as new filings and prices come in.
Every input behind PM's DCF
| Input | Value |
|---|---|
| Base-year revenuePhilip Morris International Inc. FY2025 10-K (accession 0001628280-26-005939): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $40,648,000,000 |
| Base EBIT marginPhilip Morris International Inc. FY2025 10-K (accession 0001628280-26-005939): us-gaap:OperatingIncomeLoss 14,892,000,000 / revenue 40,648,000,000 = 36.64%, FY2025. | 36.6% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 8% → 7% → 6% → 5% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.40 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesPhilip Morris International Inc. FY2025 10-K (accession 0001628280-26-005939): WeightedAverageNumberOfDilutedSharesOutstanding = 1,558,000,000 shares, FY2025. | 1,558M |
| Market priceDelayed quote · as of 2026-10-19 17:01 UTC | $202.33 |
Change PM's assumptions
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What does Philip Morris International Inc. do?
What does it do?
Philip Morris International Inc. operates as a tobacco company. It operates in the Tobacco industry (Consumer Defensive sector), headquartered in United States. The company employs roughly 84,900 people.
How does it make money?
The business turns $42.5B in annual revenue into profit. Out of every $100 of sales, about $40 is left as operating profit (operating margin of 40.0%), after a 67% gross margin on the products/services it sells. After all costs, taxes and interest, 25.6% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: may struggle to cover its short-term bills (1.0× current ratio), and is currently profitable.
PM insider trading
We have no recent SEC Form 4 insider filings on file for Philip Morris International Inc.. Form 4 covers US-listed companies only.
Common questions
What is PM's intrinsic value?
TickerWorth's blended fair value for Philip Morris International Inc. (PM) is $195.43 per share, versus a market price of $202.33 (priced within our range of $151.22 – $237.92).
Is PM overvalued or undervalued?
Priced within our range of $151.22 – $237.92 at $202.33. We don't call PM overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for PM?
A WACC of 6.9% and a terminal growth rate of 2.5%.
Is Philip Morris International stock undervalued?
TickerWorth's fair value for Philip Morris International Inc. (PM) is $195.43 against a market price of $202.33. Our read: Priced within our range of $151.22 – $237.92. This is a model estimate, not investment advice.
Philip Morris International (PM) DCF valuation and fair value
Our fair value for Philip Morris International Inc. (PM) is $195.43, built on a 6.9% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Philip Morris International stock?
Today's price implies revenue growth of 5.5% a year for 5 years; our model assumes 5.7% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $202.33. A model estimate, not investment advice.
Philip Morris International (PM) insider trading
We have no recent SEC Form 4 insider filings on file for Philip Morris International Inc. (PM). Form 4 covers US-listed companies only.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.