Stock Analysis on Net

Philip Morris International Inc. (NYSE:PM)

Enterprise Value to FCFF (EV/FCFF) 

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Free Cash Flow to The Firm (FCFF)

Philip Morris International Inc., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net earnings attributable to PMI 9,109  8,056  7,185  7,911  6,035 
Net earnings attributable to noncontrolling interests 601  536  543  375  306 
Net noncash charges 890  1,092  1,607  1,028  692 
Cash effects of changes in operating capital, net of the effects from acquired companies 1,367  128  755  164  1,879 
Net cash provided by operating activities 11,967  9,812  10,090  9,478  8,912 
Cash paid, interest, net of tax1 560  570  614  680  623 
Capital expenditures (748) (602) (852) (1,436) (1,548)
Free cash flow to the firm (FCFF) 11,779  9,780  9,852  8,722  7,987 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Philip Morris International Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Philip Morris International Inc. FCFF decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Interest Paid, Net of Tax

Philip Morris International Inc., interest paid, net of tax calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR1 21.80% 21.70% 23.20% 22.90% 40.70%
Interest Paid, Net of Tax
Cash paid, interest, before tax 716  728  800  882  1,050 
Less: Cash paid, interest, tax2 156  158  186  202  427 
Cash paid, interest, net of tax 560  570  614  680  623 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 2021 Calculation
Cash paid, interest, tax = Cash paid, interest × EITR
= 716 × 21.80% = 156


Enterprise Value to FCFF Ratio, Current

Philip Morris International Inc., current EV/FCFF calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 189,985 
Free cash flow to the firm (FCFF) 11,779 
Valuation Ratio
EV/FCFF 16.13
Benchmarks
EV/FCFF, Competitors1
Altria Group Inc. 13.51
Coca-Cola Co. 26.54
Mondelēz International Inc. 30.68
PepsiCo Inc. 34.01
EV/FCFF, Sector
Food, Beverage & Tobacco 22.76
EV/FCFF, Industry
Consumer Staples 21.87

Based on: 10-K (reporting date: 2021-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Philip Morris International Inc., historical EV/FCFF calculation, comparison to benchmarks

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 192,527  159,557  162,226  146,169  187,808 
Free cash flow to the firm (FCFF)2 11,779  9,780  9,852  8,722  7,987 
Valuation Ratio
EV/FCFF3 16.35 16.31 16.47 16.76 23.52
Benchmarks
EV/FCFF, Competitors4
Altria Group Inc. 13.00 11.79 12.41 14.07 25.53
Coca-Cola Co. 25.28 26.04 28.08 32.62 36.36
Mondelēz International Inc. 31.29 28.50 29.63 26.47 42.31
PepsiCo Inc. 32.99 30.09 35.73 24.55 22.21
EV/FCFF, Sector
Food, Beverage & Tobacco 22.23 21.25 23.13 21.52 27.66
EV/FCFF, Industry
Consumer Staples 21.64 22.76 22.90 19.98 21.10

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 192,527 ÷ 11,779 = 16.35

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Philip Morris International Inc. EV/FCFF ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.