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Philip Morris International Inc. (PM) Stock Analysis

Score A+

Blue Chip · Grade A · Bullish

Consumer Defensive · Tobacco

$192.51

Fair Value

$228.81

+18.9%

Conviction

10/10

Quality

A

Classification

Blue Chip

Investment Thesis

High quantitative score: Solid company with strong risk/reward at 10.0:1.

For New Investors

Quantitative score: high

For Current Holders

Quantitative score: neutral

Buy if

  • Price drops 15-20% (improves asymmetry)
  • Bull scenario catalysts materialize
  • Market-wide correction creates opportunity

Sell if

  • Bear scenario triggers occur
  • Quality metrics deteriorate (ROIC declining)
  • Better alternatives emerge

Valuation

Fair Value estimate: $228.81 (+18.9%). Slightly undervalued.

PEG-Based EPS

$254.91

FCF DCF Model

$288.76

EV/EBITDA

$138.77

Blended Fair Value

$228.81

Confidence

Medium

Methods

PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA

Quality Analysis

A

109/120 points

Investable

ROE (3Y Avg)

24.6%

ROIC-WACC Spread

15.3%

D/E Ratio

0.5x

Current Ratio

1.0x

Interest Coverage

9x

FCF Positive Years

3/3

Quality Flags

  • Leverage: D/E 0.5x (10/15 pts)
  • Liquidity: Current Ratio 0.96 (9/10 pts)

Market Sentiment

Wall Street Consensus

$190.00

-1.3% Upside

14 analysts

Range: $168.00$205.00

Rating: Buy

Our model is slightly more bullish than Wall Street.

Trend & Technical

Bullish

Price ($192.05) is 17.9% above SMA 200 ($162.91). Bullish trend confirmed.

Technical Score80/100

Tech Score 80/100 — Strong technical setup. Trend, momentum, and positioning aligned bullish.

Risk & Reward

Asymmetry Ratio

10.00:1

Expected Return

+75.1%

Bull Upside

+176.5%

Bear Downside

-10.0%

Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside.

Verdict: Very Favorable

Scenario Analysis

Bear

Base

Bull

Buy Zone & Action Plan

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AI Executive Summary

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Technical Analysis

RSI, MACD, moving averages, trend signals, and momentum indicators.

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Frequently Asked Questions

What is the fair value of PM?

Based on our multi-method conviction analysis, the estimated fair value of Philip Morris International Inc. (PM) is $228.81. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is medium.

Is PM a buy, sell, or hold?

PM currently has a STRONG_BUY rating with a conviction score of 10/10. High quantitative score: Solid company with strong risk/reward at 10.0:1. Quantitative score: high.

Is PM a high-quality stock?

Philip Morris International Inc. has a quality grade of A (109/120 points), rated as Investable. Key metrics include ROE of 24.6%, ROIC-WACC spread of 15.3%, and D/E ratio of 0.5x.

What type of stock is PM?

PM is classified as a "blue_chip" in our framework. High P/E: 27.1x, Mature growth: 8.4%, Large cap: $300.0B, Moderate growth: 8.4%, Dividend paying: 3.0%

What do Wall Street analysts say about PM?

14 Wall Street analysts have a consensus price target of $190.00 for PM, representing -1.3% upside. Targets range from $168.00 to $205.00. The consensus recommendation is "Buy". Our model is slightly more bullish than Wall Street.

What are the risks of investing in PM?

The risk/reward asymmetry ratio for PM is 10.00:1, rated as Very Favorable. Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside. The expected return is +75.1%, with bull case upside of +176.5% and bear case downside of -10.0%.

What is the current trend for PM?

PM is in a bullish trend. Price ($192.05) is 17.9% above SMA 200 ($162.91). Bullish trend confirmed. The technical score is 80/100.

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Last updated: May 19, 2026 · Framework version 3.7

This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.