Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Philip Morris International Inc. (NYSE:PM)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level


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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings attributable to PMI 7,185  7,911  6,035  6,967  6,873 
Net earnings attributable to noncontrolling interests 543  375  306  283  159 
Net noncash charges 1,607  1,028  692  890  767 
Cash effects of changes in operating capital 755  164  1,879  (63) 66 
Net cash provided by operating activities 10,090  9,478  8,912  8,077  7,865 
Cash paid, interest, net of tax1 614  680  623  758  752 
Capital expenditures (852) (1,436) (1,548) (1,172) (960)
Free cash flow to the firm (FCFF) 9,852  8,722  7,987  7,663  7,657 

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Philip Morris International Inc.’s 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.’s FCFF increased from 2017 to 2018 and from 2018 to 2019.

Interest Paid, Net of Tax

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

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR1 23.20% 22.90% 40.70% 27.90% 28.00%
Interest Paid, Net of Tax
Cash paid, interest, before tax 800  882  1,050  1,052  1,045 
Less: Cash paid, interest, tax2 186  202  427  294  293 
Cash paid, interest, net of tax 614  680  623  758  752 

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17).

1 See details »

2 2019 Calculation
Cash paid, interest, tax = Cash paid, interest × EITR
= 800 × 23.20% = 186


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) 147,755 
Free cash flow to the firm (FCFF) 9,852 
Valuation Ratio
EV/FCFF 15.00
Benchmarks
EV/FCFF, Competitors1
Altria Group Inc. 11.83
EV/FCFF, Sector
Tobacco 13.80
EV/FCFF, Industry
Consumer Goods 24.64

Based on: 10-K (filing date: 2020-02-07).

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 162,226  146,169  187,808  185,757  168,178 
Free cash flow to the firm (FCFF)2 9,852  8,722  7,987  7,663  7,657 
Valuation Ratio
EV/FCFF3 16.47 16.76 23.52 24.24 21.96
Benchmarks
EV/FCFF, Competitors4
Altria Group Inc. 12.41 14.07 25.53 37.49 21.81
EV/FCFF, Sector
Tobacco 14.88 15.42 23.86 28.94 21.89
EV/FCFF, Industry
Consumer Goods 23.97 21.93 28.83 25.53 21.96

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17).

1 See details »

2 See details »

3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 162,226 ÷ 9,852 = 16.47

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.’s EV/FCFF ratio decreased from 2017 to 2018 and from 2018 to 2019.