Philip Morris International Inc., FCFE calculation

US$ in millions

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.

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

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.

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

	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 price^1, 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.

Philip Morris International Inc. (PM)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical