Philip Morris International Inc. (PM)


Price to FCFE (P/FCFE)

Intermediate level


Free Cash Flow to Equity (FCFE)

Philip Morris International Inc., FCFE 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 
Capital expenditures (852) (1,436) (1,548) (1,172) (960)
Short-term borrowing, net issuances (repayments), maturities of 90 days or less (364) 255  (127) (12) (266)
Short-term borrowing, issuances, maturities longer than 90 days 989  —  1,634  —  — 
Short-term borrowing, repayments, maturities longer than 90 days (989) —  (1,634) —  — 
Long-term debt proceeds 3,819  —  6,850  3,536  1,539 
Long-term debt repaid (3,998) (2,484) (2,551) (2,393) (1,229)
Free cash flow to equity (FCFE) 8,695  5,813  11,536  8,036  6,949 

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
FCFE Free cash flow to equity is the cash flow available to Philip Morris International Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Philip Morris International Inc.’s FCFE decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to FCFE Ratio, Current

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

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No. shares of common stock outstanding 1,555,911,930
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 8,695 
FCFE per share 5.59
Current share price (P) 87.44
Valuation Ratio
P/FCFE 15.65
Benchmarks
P/FCFE, Competitors1
Altria Group Inc. 4.24
P/FCFE, Sector
Tobacco 8.54
P/FCFE, Industry
Consumer Goods 20.05

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

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.


Price to FCFE Ratio, Historical

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 1,555,911,930 1,554,584,344 1,553,229,898 1,551,385,884 1,549,347,456
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 8,695  5,813  11,536  8,036  6,949 
FCFE per share3 5.59 3.74 7.43 5.18 4.49
Share price1, 4 87.45 76.73 103.05 102.58 91.23
Valuation Ratio
P/FCFE5 15.65 20.52 13.87 19.80 20.34
Benchmarks
P/FCFE, Competitors6
Altria Group Inc. 4.86 25.75 31.14 32.24
P/FCFE, Sector
Tobacco 8.38 17.33 23.96 24.54
P/FCFE, Industry
Consumer Goods 16.20 15.64 13.04 13.25

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 Data adjusted for splits and stock dividends.

2 See details »

3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 8,695,000,000 ÷ 1,555,911,930 = 5.59

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

5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 87.45 ÷ 5.59 = 15.65

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Philip Morris International Inc.’s P/FCFE ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.