Philip Morris International Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net earnings attributable to PMI	11,348)	7,057)	7,813)	9,048)	9,109)
Net earnings attributable to noncontrolling interests	500)	446)	455)	479)	601)
Net noncash charges	2,193)	4,037)	2,236)	1,114)	890)
Cash effects of changes in operating capital, net of the effects from acquired and divested companies	(1,808)	677)	(1,300)	162)	1,367)
Net cash provided by operating activities	12,233)	12,217)	9,204)	10,803)	11,967)
Capital expenditures	(1,569)	(1,444)	(1,321)	(1,077)	(748)
Short-term borrowing, net issuances (repayments), maturities of 90 days or less	19)	(1,461)	530)	876)	—)
Short-term borrowing, issuances, maturities longer than 90 days	170)	100)	1,366)	934)	—)
Short-term borrowing, repayments, maturities longer than 90 days	(170)	(433)	(1,172)	(795)	—)
Borrowings under credit facilities related to Swedish Match AB acquisition	—)	—)	—)	13,920)	—)
Repayments under credit facilities related to Swedish Match AB acquisition	—)	(3,168)	(4,430)	(4,000)	—)
Long-term debt proceeds	7,055)	8,142)	9,959)	5,965)	—)
Long-term debt repaid	(5,368)	(4,803)	(2,551)	(2,724)	(3,042)
Free cash flow to equity (FCFE)	12,370)	9,150)	11,585)	23,902)	8,177)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The financial information reveals fluctuating patterns in both net cash provided by operating activities and free cash flow to equity (FCFE) over the five-year period. Operating cash flow demonstrates some volatility, while FCFE exhibits a more pronounced degree of fluctuation.

Net Cash from Operations: Net cash provided by operating activities decreased from US$11,967 million in 2021 to US$10,803 million in 2022, representing a decline of approximately 9.8%. A further decrease was observed in 2023, falling to US$9,204 million. However, a substantial recovery occurred in 2024, with operating cash flow increasing to US$12,217 million. This upward trend continued into 2025, reaching US$12,233 million, indicating a stabilization at a higher level.
Free Cash Flow to Equity (FCFE): FCFE experienced significant volatility during the observed period. It began at US$8,177 million in 2021, then surged dramatically to US$23,902 million in 2022, an increase of over 192%. This was followed by a substantial decline in 2023 to US$11,585 million. A further decrease was noted in 2024, with FCFE falling to US$9,150 million. Finally, FCFE increased again in 2025, reaching US$12,370 million, though remaining below the 2022 peak.

The divergence between operating cash flow and FCFE suggests that factors beyond core operations, such as financing activities or changes in non-operating assets and liabilities, are significantly impacting the cash available to equity holders. The large increase in FCFE in 2022, followed by subsequent declines, warrants further investigation to understand the underlying drivers of these fluctuations. The recent stabilization in operating cash flow, coupled with the FCFE increase in 2025, may indicate a positive trend, but continued monitoring is recommended.

AI Ask an analyst for more

Download chart

Philip Morris International Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	1,556,679,579
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	12,370)
FCFE per share	7.95
Current share price (P)	163.87
Valuation Ratio
P/FCFE	20.62
Benchmarks
P/FCFE, Competitors¹
Coca-Cola Co.	60.34
Mondelēz International Inc.	13.67
PepsiCo Inc.	17.22
P/FCFE, Sector
Food, Beverage & Tobacco	24.44
P/FCFE, Industry
Consumer Staples	36.10

Based on: 10-K (reporting date: 2025-12-31).

¹ Click competitor name to see calculations.

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

Philip Morris International Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
No. shares of common stock outstanding¹	1,556,679,579	1,554,857,221	1,552,456,597	1,550,232,895	1,549,827,817
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	12,370)	9,150)	11,585)	23,902)	8,177)
FCFE per share³	7.95	5.88	7.46	15.42	5.28
Share price^1, 4	182.81	145.32	89.01	102.36	107.96
Valuation Ratio
P/FCFE⁵	23.01	24.69	11.93	6.64	20.46
Benchmarks
P/FCFE, Competitors⁶
Coca-Cola Co.	64.52	41.22	22.42	29.91	23.29
Mondelēz International Inc.	14.20	32.34	—	14.10	30.57
PepsiCo Inc.	18.63	23.92	17.88	47.17	77.00
P/FCFE, Sector
Food, Beverage & Tobacco	26.47	29.59	20.54	16.95	29.54
P/FCFE, Industry
Consumer Staples	33.00	32.08	24.17	25.27	24.83

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 12,370,000,000 ÷ 1,556,679,579 = 7.95

⁴ Closing price as at the filing date of Philip Morris International Inc. Annual Report.

⁵ 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 182.81 ÷ 7.95 = 23.01

⁶ Click competitor name to see calculations.

The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibited considerable fluctuation over the observed period. Initial values decreased significantly before increasing again, suggesting shifts in investor sentiment and valuation relative to the company’s free cash flow generation.

Share Price: The share price demonstrated a decline from $107.96 in 2021 to $89.01 in 2023. A substantial recovery followed, with the price reaching $145.32 in 2024 and further increasing to $182.81 in 2025. This indicates a period of investor pessimism followed by renewed confidence.
FCFE per Share: FCFE per share increased notably from $5.28 in 2021 to $15.42 in 2022, representing a significant improvement in cash flow available to equity holders. However, this was followed by a decrease to $7.46 in 2023, and a further decline to $5.88 in 2024. A modest recovery to $7.95 was observed in 2025. The volatility suggests inconsistency in the company’s ability to generate FCFE.
P/FCFE Ratio: The P/FCFE ratio began at 20.46 in 2021, then decreased substantially to 6.64 in 2022, coinciding with the increase in FCFE per share. The ratio rose to 11.93 in 2023, then increased sharply to 24.69 in 2024, driven by the increase in share price and a decrease in FCFE per share. The ratio remained elevated at 23.01 in 2025. The fluctuations suggest that the market valuation is sensitive to both the share price and the company’s FCFE generation.

The observed divergence between share price and FCFE per share, particularly in 2024 and 2025, warrants further investigation. While the share price increased significantly, FCFE per share remained relatively stable, resulting in a higher P/FCFE ratio. This could indicate that investors are anticipating future growth or are willing to pay a premium for the stock despite current cash flow levels.

AI Ask an analyst for more

Download chart

Philip Morris International Inc. (NYSE:PM)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical