Philip Morris International Inc

PM: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$689.00	Bcprj	Rnqsftmzfl

Philip Morris International: Raising Growth on Next-Generation Products; Shares Fairly Valued

Kristoffer Inton

Jun 25, 2024

We've raised our long-term growth forecast after taking a more optimistic view of Philip Morris International's next-generation products. Our fair value estimate rises to $106 per share from $103. Our revised valuation implies a 2024 price/adjusted earnings ratio of 17 times, enterprise value/adjusted EBITDA of 14 times, and 5% dividend yield. These multiples are at the higher end of the tobacco peer group given the better long-term growth prospects its boasts.

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