Financial statements analysis and common stock valuation

Enterprise Value to EBITDA (EV/EBITDA)

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical

Price to Operating Profit (P/OP)
since 2008

Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.

• Calculation
• Comparison to Competitors

Net Profit Margin
since 2008

Philip Morris International Inc.’s indicator of profitability, calculated as net income divided by revenue.

• Calculation
• Comparison to Competitors
• Comparison to Tobacco Sector
• Comparison to Consumer Goods Industry

Common Stock Valuation Ratios
Quarterly Data

Relative valuation technique determine the value of Philip Morris International Inc. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock’s value, such as earnings, book value, and sales.

• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Price to Sales (P/S)
since 2008

An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.

• Calculation
• Comparison to Competitors
• Comparison to Tobacco Sector
• Comparison to Consumer Goods Industry

Income Statement

The income statement (statement of earnings) reports on the performance of Philip Morris International Inc., the result of its operating activities.