Latest Ratios: P/E Ratio 25.4x · EV/EBITDA 19.6x · ROE N/A. (2003–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $288.0B | $249.9B | $187.3B | $146.1B | $157.1B | $148.1B | $129.0B | $132.4B | $103.8B | $164.1B | $141.9B |
| Enterprise Value | $331.9B | $293.9B | $228.7B | $191.0B | $197.0B | $171.4B | $153.2B | $156.6B | $129.0B | $190.0B | $166.7B |
| P/E Ratio → | 25.45 | 22.09 | 26.63 | 18.74 | 17.42 | 16.30 | 16.04 | 18.46 | 13.12 | 27.23 | 20.42 |
| P/S Ratio | 7.08 | 6.15 | 4.94 | 4.15 | 4.95 | 4.72 | 4.50 | 4.44 | 3.50 | 5.71 | 5.32 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 27.00 | 23.43 | 17.38 | 18.53 | 16.15 | 13.20 | 14.01 | 14.33 | 12.91 | 22.28 | 20.55 |
| P/OCF | 23.54 | 20.43 | 15.33 | 15.87 | 14.54 | 12.38 | 13.15 | 13.12 | 10.95 | 18.41 | 17.57 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.23 | 6.04 | 5.43 | 6.20 | 5.46 | 5.34 | 5.25 | 4.35 | 6.61 | 6.25 |
| EV / EBITDA | 19.61 | 17.36 | 15.06 | 14.74 | 14.79 | 12.27 | 12.07 | 13.62 | 10.46 | 15.26 | 14.32 |
| EV / EBIT | 22.23 | 19.00 | 16.38 | 15.94 | 15.88 | 13.22 | 13.12 | 14.68 | 11.19 | 16.40 | 15.17 |
| EV / FCF | — | 27.56 | 21.23 | 24.22 | 20.25 | 15.28 | 16.64 | 16.95 | 16.04 | 25.80 | 24.15 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 67.1% | 67.1% | 64.8% | 63.3% | 64.1% | 68.1% | 66.7% | 64.7% | 63.7% | 63.7% | 64.8% |
| Operating Margin | 36.7% | 36.7% | 35.4% | 32.9% | 38.6% | 41.3% | 40.8% | 35.3% | 38.3% | 40.3% | 40.9% |
| Net Profit Margin | 27.9% | 27.9% | 18.6% | 22.1% | 28.5% | 29.0% | 28.1% | 24.1% | 26.7% | 21.0% | 26.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | — | — |
| ROA | 17.3% | 17.3% | 11.1% | 12.3% | 17.6% | 21.2% | 18.4% | 17.4% | 19.1% | 15.1% | 19.7% |
| ROIC | 33.2% | 33.2% | 30.0% | 25.1% | 37.7% | 67.7% | 62.3% | 54.4% | 56.5% | 58.7% | 59.4% |
| ROCE | 36.1% | 36.1% | 34.5% | 31.5% | 43.4% | 54.9% | 47.6% | 45.1% | 45.7% | 48.9% | 56.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 2.88 | 2.88 | 3.01 | 3.70 | 3.24 | 1.99 | 2.48 | 2.70 | 2.58 | 2.76 | 2.50 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / EBITDA | 2.60 | 2.60 | 2.73 | 3.46 | 3.00 | 1.67 | 1.91 | 2.10 | 2.04 | 2.08 | 2.13 |
| Debt / FCF | — | 4.12 | 3.85 | 5.69 | 4.10 | 2.08 | 2.63 | 2.62 | 3.13 | 3.52 | 3.60 |
| Interest Coverage | 9.75 | 9.75 | 7.92 | 7.85 | 16.15 | 17.60 | 16.05 | 13.40 | 13.48 | 10.57 | 10.28 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.96 | 0.96 | 0.88 | 0.75 | 0.72 | 0.92 | 1.10 | 1.09 | 1.13 | 1.35 | 1.07 |
| Quick Ratio | 0.51 | 0.51 | 0.47 | 0.34 | 0.36 | 0.47 | 0.61 | 0.60 | 0.62 | 0.80 | 0.52 |
| Cash Ratio | 0.19 | 0.19 | 0.18 | 0.12 | 0.12 | 0.23 | 0.37 | 0.36 | 0.38 | 0.53 | 0.26 |
| Asset Turnover | — | 0.59 | 0.61 | 0.54 | 0.51 | 0.76 | 0.64 | 0.70 | 0.74 | 0.67 | 0.72 |
| Inventory Turnover | 1.16 | 1.16 | 1.41 | 1.20 | 1.15 | 1.15 | 1.00 | 1.14 | 1.22 | 1.18 | 1.04 |
| Days Sales Outstanding | — | 52.17 | 45.05 | 45.57 | 54.65 | 45.79 | 47.84 | 45.52 | 43.91 | 47.46 | 47.86 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.0% | 3.5% | 4.4% | 5.5% | 5.0% | 5.1% | 5.7% | 5.4% | 6.6% | 4.0% | 4.5% |
| Payout Ratio | 76.0% | 76.0% | 116.5% | 102.2% | 86.3% | 83.2% | 91.4% | 99.7% | 87.0% | 108.0% | 91.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.9% | 4.5% | 3.8% | 5.3% | 5.7% | 6.1% | 6.2% | 5.4% | 7.6% | 3.7% | 4.9% |
| FCF Yield | 3.7% | 4.3% | 5.8% | 5.4% | 6.2% | 7.6% | 7.1% | 7.0% | 7.7% | 4.5% | 4.9% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 3.0% | 3.5% | 4.4% | 5.5% | 5.1% | 5.6% | 5.7% | 5.4% | 6.6% | 4.0% | 4.5% |
| Shares Outstanding | — | $1.6B | $1.6B | $1.6B | $1.6B | $1.6B | $1.6B | $1.6B | $1.6B | $1.6B | $1.6B |
Regulatory and leverage constraints
According to current market data, PM trades at a forward P/E of 21.56, which represents a notable premium over traditional tobacco peers like BTI, suggesting that investors are pricing in a superior growth trajectory driven by the successful adoption of smoke-free IQOS and ZYN platforms.
The valuation multiple appears to be supported by the company's transition away from declining combustible volumes, yet the PEG ratio of 3.52 indicates that the market may be overestimating the sustainability of this growth rate. Investors should monitor whether the current premium can be maintained if regulatory headwinds in the US market begin to compress the expected expansion of the oral nicotine segment.
Based on reported financial figures, PM's ROIC has fluctuated between 6.0% and 8.6% over the last ten quarters, a range that suggests the company is struggling to generate returns on invested capital that significantly exceed its cost of capital following the Swedish Match acquisition.
The modest ROIC trend indicates that while the smoke-free pivot is strategically sound, the heavy capital investment required for infrastructure and acquisitions is currently diluting overall efficiency. This performance warrants further investigation into whether the company can improve its capital allocation returns as the IQOS ecosystem reaches greater scale and maturity.
As reported in recent financial statements, the company's cash conversion cycle remains elevated, frequently exceeding 200 days, which highlights a significant reliance on inventory management and suggests that the business model is inherently capital-intensive due to the long lead times required for tobacco leaf processing.
The high days inventory outstanding, often exceeding 250 days, reflects the necessity of aging tobacco stocks, which ties up significant liquidity. This structural inefficiency appears to be a permanent feature of the industry, and investors should be wary of how these working capital swings can lead to the observed quarterly volatility in free cash flow.
Based on the provided data, the company's leverage profile remains strained, with a debt-to-EBITDA ratio consistently above 10x in recent quarters, indicating that the aggressive pursuit of smoke-free growth has come at the cost of a significantly weakened balance sheet position.
While the interest coverage ratio remains functional, the persistent negative equity position and high debt load suggest that the company has limited room for further large-scale debt-funded acquisitions. The market should monitor whether management prioritizes deleveraging over dividend growth, as the current debt structure leaves little margin for error in a higher-interest-rate environment.
The P/E ratio is frequently misapplied to PM because it fails to account for the massive non-cash amortization and restructuring costs associated with the company's rapid transition to smoke-free products, which can artificially depress reported earnings and distort the perceived valuation of the core business.
Analysts should instead focus on EV/EBITDA or P/FCF, as these metrics better capture the underlying cash-generating power of the nicotine business while stripping away the noise of acquisition-related accounting. Relying solely on P/E may lead to an inaccurate assessment of the company's true earning power and its ability to sustain shareholder returns.
Includes 30+ ratios · 22 years · Updated daily
Wall Street verdict, signals, and target summaries.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying PM stock.
Philip Morris International Inc.'s current P/E ratio is 25.4x. The historical average is 18.0x. This places it at the 89th percentile of its historical range.
Philip Morris International Inc.'s current EV/EBITDA is 19.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.7x.
Based on historical data, Philip Morris International Inc. is trading at a P/E of 25.4x. This is at the 89th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Philip Morris International Inc.'s current dividend yield is 3.00% with a payout ratio of 76.0%.
Philip Morris International Inc. has 67.1% gross margin and 36.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Philip Morris International Inc.'s Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.