Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Philip Morris International Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Food, Beverage & Tobacco | Consumer Staples | ||||
---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||||
Current share price (P) | $178.88 | ||||||||
No. shares of common stock outstanding | 1,556,517,182 | ||||||||
Earnings per share (EPS) | $4.53 | ||||||||
Operating profit per share | $8.61 | ||||||||
Sales per share | $24.34 | ||||||||
Book value per share (BVPS) | $-7.55 | ||||||||
Valuation Ratios (Price Multiples) | |||||||||
Price to earnings (P/E) | 39.45 | 28.89 | 19.37 | 19.38 | 26.99 | 34.12 | |||
Price to operating profit (P/OP) | 20.78 | 30.74 | 14.08 | 14.40 | 20.19 | 24.30 | |||
Price to sales (P/S) | 7.35 | 6.53 | 2.45 | 2.02 | 4.04 | 1.93 |
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Based on: 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), 10-K (reporting date: 2020-12-31).
The analysis of the financial ratios over the five-year period reveals several notable trends in valuation multiples.
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibited a gradual increase from 16.55 in 2020 to 18.37 in 2021, followed by a slight decrease to 17.54 in 2022. It then rose marginally to 17.69 in 2023 before experiencing a significant jump to 32.02 in 2024. This substantial increase in the latest year suggests a sharp rise in market valuation relative to earnings, potentially indicating heightened investor optimism or expectations of future growth.
- Price to Operating Profit (P/OP) Ratio
- This ratio follows a generally increasing trend from 11.43 in 2020 to 12.9 in 2021 and 12.96 in 2022. However, it declined slightly to 11.96 in 2023 before surging to 16.86 in 2024. The fluctuation implies relatively stable valuation up to 2023 with a marked re-rating in 2024, which may reflect changes in operating profit margins or shifts in market sentiment.
- Price to Sales (P/S) Ratio
- The P/S ratio increased from 4.65 in 2020 to a peak of 5.33 in 2021. It then declined gradually to 5.00 in 2022 and further to 3.93 in 2023 before rising sharply to 5.97 in 2024. This pattern indicates variability in how the market values sales over time, with a notable rise in 2024, suggesting either improved sales prospects or valuation multiples.
- Price to Book Value (P/BV) Ratio
- No data is available for the P/BV ratio, precluding analysis for this metric.
In summary, the valuation ratios generally demonstrate more pronounced growth in 2024 across P/E, P/OP, and P/S, indicating a substantial revaluation by the market in that year. Prior to 2024, ratios showed moderate fluctuations with some periods of decline. The data suggests increased investor confidence or expectation of enhanced performance metrics in the most recent year analyzed.
Price to Earnings (P/E)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
No. shares of common stock outstanding1 | 1,554,857,221 | 1,552,456,597 | 1,550,232,895 | 1,549,827,817 | 1,557,451,856 | |
Selected Financial Data (US$) | ||||||
Net earnings attributable to PMI (in millions) | 7,057) | 7,813) | 9,048) | 9,109) | 8,056) | |
Earnings per share (EPS)2 | 4.54 | 5.03 | 5.84 | 5.88 | 5.17 | |
Share price1, 3 | 145.32 | 89.01 | 102.36 | 107.96 | 85.63 | |
Valuation Ratio | ||||||
P/E ratio4 | 32.02 | 17.69 | 17.54 | 18.37 | 16.55 | |
Benchmarks | ||||||
P/E Ratio, Competitors5 | ||||||
Coca-Cola Co. | 28.34 | 24.43 | 27.12 | 27.63 | 27.91 | |
Mondelēz International Inc. | 16.11 | 20.87 | 33.07 | 21.64 | 22.33 | |
PepsiCo Inc. | 20.55 | 25.40 | 26.71 | 30.58 | 26.15 | |
P/E Ratio, Sector | ||||||
Food, Beverage & Tobacco | 25.04 | 22.54 | 24.66 | 24.78 | 23.23 | |
P/E Ratio, Industry | ||||||
Consumer Staples | 29.43 | 26.62 | 25.35 | 26.07 | 24.12 |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net earnings attributable to PMI ÷ No. shares of common stock outstanding
= 7,057,000,000 ÷ 1,554,857,221 = 4.54
3 Closing price as at the filing date of Philip Morris International Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 145.32 ÷ 4.54 = 32.02
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited an overall upward movement over the five-year period. Starting at $85.63 at the end of 2020, it rose to a peak of $107.96 by the end of 2021. Following this, there was a moderate decline to $102.36 in 2022 and a more significant drop to $89.01 in 2023. However, in 2024, the share price sharply increased to $145.32, marking the highest value in the series and indicating a strong recovery or positive market sentiment.
- Earnings per Share (EPS) Patterns
- EPS showed a generally declining trend over the observed period. It increased from $5.17 in 2020 to $5.88 in 2021, representing the peak EPS in the dataset. Subsequently, EPS declined slightly to $5.84 in 2022 and decreased more noticeably to $5.03 in 2023. By the end of 2024, EPS further decreased to $4.54, indicating a sustained reduction in profitability per share through the latter years.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio demonstrated moderate fluctuations before a substantial increase in the final year. It started at 16.55 in 2020, increased to 18.37 in 2021, and then slightly decreased to 17.54 in 2022. A minor increase followed in 2023 up to 17.69. In 2024, the ratio surged dramatically to 32.02. This spike suggests that the share price appreciated significantly relative to earnings, possibly reflecting elevated investor expectations despite declining EPS.
- Overall Insights
- The data reveals a divergence between share price appreciation and earnings performance in recent years. While the EPS decreased steadily after 2021, the share price ultimately rose sharply in 2024, contributing to the elevated P/E ratio. This pattern may indicate that market valuation factors beyond current earnings, such as growth prospects or external market conditions, influenced investor behavior. The high P/E ratio in 2024 could also imply increased risk or a potential overvaluation relative to the company’s earnings fundamentals.
Price to Operating Profit (P/OP)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
No. shares of common stock outstanding1 | 1,554,857,221 | 1,552,456,597 | 1,550,232,895 | 1,549,827,817 | 1,557,451,856 | |
Selected Financial Data (US$) | ||||||
Operating income (in millions) | 13,402) | 11,556) | 12,246) | 12,975) | 11,668) | |
Operating profit per share2 | 8.62 | 7.44 | 7.90 | 8.37 | 7.49 | |
Share price1, 3 | 145.32 | 89.01 | 102.36 | 107.96 | 85.63 | |
Valuation Ratio | ||||||
P/OP ratio4 | 16.86 | 11.96 | 12.96 | 12.90 | 11.43 | |
Benchmarks | ||||||
P/OP Ratio, Competitors5 | ||||||
Coca-Cola Co. | 30.15 | 23.14 | 23.72 | 26.19 | 24.03 | |
Mondelēz International Inc. | 11.71 | 18.81 | 25.43 | 20.00 | 20.60 | |
PepsiCo Inc. | 15.27 | 19.23 | 20.67 | 20.87 | 18.47 | |
P/OP Ratio, Sector | ||||||
Food, Beverage & Tobacco | 18.73 | 18.19 | 19.51 | 19.52 | 17.78 | |
P/OP Ratio, Industry | ||||||
Consumer Staples | 20.96 | 19.82 | 18.28 | 19.01 | 18.29 |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 13,402,000,000 ÷ 1,554,857,221 = 8.62
3 Closing price as at the filing date of Philip Morris International Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 145.32 ÷ 8.62 = 16.86
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited an overall upward trend over the five-year period analyzed. Starting at $85.63 at the end of 2020, it rose sharply to $107.96 at the end of 2021. However, it experienced a decline in the subsequent years, falling to $102.36 in 2022 and further to $89.01 in 2023. In 2024, the share price recovered substantially, reaching a high of $145.32, which is the highest value in the observed timeframe.
- Operating Profit Per Share
- Operating profit per share demonstrated moderate fluctuation throughout the period. It increased from $7.49 in 2020 to a peak of $8.37 in 2021, indicating improved profitability. Thereafter, it showed a gradual decline to $7.9 in 2022 and further to $7.44 in 2023. By the end of 2024, operating profit per share rose again to $8.62, surpassing previous highs.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio, which reflects market valuation relative to operating profit, showed volatility across the years. It started at 11.43 in 2020, increased steadily to 12.9 in 2021 and marginally to 12.96 in 2022. This was followed by a decrease to 11.96 in 2023, indicating a slight market correction or improved operating profit relative to the share price then. The ratio surged in 2024 to 16.86, the highest in the period, suggesting that the market valuation increased considerably relative to operating profit that year.
- Overall Insights
- The data reveals a pattern of share price volatility with an eventual significant increase in 2024. Operating profit per share showed less pronounced variability, with a dip between 2022 and 2023 but recovering thereafter. The P/OP ratio's sharp rise in 2024 indicates that the market's valuation of the company relative to its operating profit increased substantially, possibly reflecting heightened investor confidence or expectations of future growth. The divergence in 2024 between increasing share price and operating profit per share requires further examination to understand the underlying drivers fully.
Price to Sales (P/S)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
No. shares of common stock outstanding1 | 1,554,857,221 | 1,552,456,597 | 1,550,232,895 | 1,549,827,817 | 1,557,451,856 | |
Selected Financial Data (US$) | ||||||
Net revenues (in millions) | 37,878) | 35,174) | 31,762) | 31,405) | 28,694) | |
Sales per share2 | 24.36 | 22.66 | 20.49 | 20.26 | 18.42 | |
Share price1, 3 | 145.32 | 89.01 | 102.36 | 107.96 | 85.63 | |
Valuation Ratio | ||||||
P/S ratio4 | 5.97 | 3.93 | 5.00 | 5.33 | 4.65 | |
Benchmarks | ||||||
P/S Ratio, Competitors5 | ||||||
Coca-Cola Co. | 6.40 | 5.72 | 6.02 | 6.99 | 6.55 | |
Mondelēz International Inc. | 2.04 | 2.87 | 2.85 | 3.24 | 2.99 | |
PepsiCo Inc. | 2.14 | 2.52 | 2.75 | 2.93 | 2.65 | |
P/S Ratio, Sector | ||||||
Food, Beverage & Tobacco | 3.74 | 3.52 | 3.87 | 4.28 | 3.88 | |
P/S Ratio, Industry | ||||||
Consumer Staples | 1.67 | 1.45 | 1.54 | 1.61 | 1.49 |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Net revenues ÷ No. shares of common stock outstanding
= 37,878,000,000 ÷ 1,554,857,221 = 24.36
3 Closing price as at the filing date of Philip Morris International Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 145.32 ÷ 24.36 = 5.97
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited fluctuations over the observed period. It increased significantly from 85.63 US$ at the end of 2020 to a peak of 107.96 US$ by the end of 2021. Subsequently, it declined to 102.36 US$ in 2022 and further to 89.01 US$ in 2023. However, in 2024, there was a marked rebound, with the share price rising sharply to 145.32 US$.
- Sales per Share
- The sales per share demonstrated a consistent and gradual upward trend. Beginning at 18.42 US$ in 2020, sales per share increased each year, reaching 20.26 US$ in 2021, 20.49 US$ in 2022, 22.66 US$ in 2023, and culminating at 24.36 US$ in 2024. This steady growth suggests improving operational performance or increased revenue generation relative to the number of shares outstanding.
- Price-to-Sales (P/S) Ratio
- The P/S ratio followed a somewhat volatile pattern over the period. It started at 4.65 in 2020 and rose to 5.33 in 2021, indicating a higher market valuation relative to sales. In 2022, the ratio decreased slightly to 5.00 and then more noticeably dropped to 3.93 in 2023. Nevertheless, 2024 showed a significant increase to 5.97, the highest point in the period, reflecting perhaps a strong market revaluation or expectation of future sales growth.
- Overall Insights
- While sales per share displayed steady improvement, the market valuation as reflected in the share price and P/S ratio showed more volatility, with substantial dips in 2023 followed by pronounced recoveries in 2024. The surge in share price and P/S ratio in 2024 suggests renewed investor confidence possibly driven by anticipated growth or other favorable developments. The contrasting trends between steady sales growth and fluctuating market valuation highlight the importance of market sentiment and external factors impacting the company’s stock performance.
Price to Book Value (P/BV)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
No. shares of common stock outstanding1 | 1,554,857,221 | 1,552,456,597 | 1,550,232,895 | 1,549,827,817 | 1,557,451,856 | |
Selected Financial Data (US$) | ||||||
Total PMI stockholders’ deficit (in millions) | (11,750) | (11,225) | (8,957) | (10,106) | (12,567) | |
Book value per share (BVPS)2 | -7.56 | -7.23 | -5.78 | -6.52 | -8.07 | |
Share price1, 3 | 145.32 | 89.01 | 102.36 | 107.96 | 85.63 | |
Valuation Ratio | ||||||
P/BV ratio4 | — | — | — | — | — | |
Benchmarks | ||||||
P/BV Ratio, Competitors5 | ||||||
Coca-Cola Co. | 12.12 | 10.09 | 10.73 | 11.74 | 11.20 | |
Mondelēz International Inc. | 2.76 | 3.65 | 3.34 | 3.29 | 2.88 | |
PepsiCo Inc. | 10.91 | 12.45 | 13.88 | 14.52 | 13.84 | |
P/BV Ratio, Sector | ||||||
Food, Beverage & Tobacco | 13.74 | 11.92 | 12.59 | 13.34 | 12.88 | |
P/BV Ratio, Industry | ||||||
Consumer Staples | 9.43 | 8.14 | 8.11 | 8.15 | 7.44 |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Total PMI stockholders’ deficit ÷ No. shares of common stock outstanding
= -11,750,000,000 ÷ 1,554,857,221 = -7.56
3 Closing price as at the filing date of Philip Morris International Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 145.32 ÷ -7.56 = —
5 Click competitor name to see calculations.
- Share Price
- The share price experienced an overall upward trend from 2020 to 2024, rising from $85.63 to $145.32. However, this increase was not linear, as the price peaked in 2021 at $107.96, slightly declined to $102.36 in 2022, and further decreased to $89.01 in 2023 before recovering sharply in 2024. This fluctuation suggests periods of market volatility or changing investor sentiment within this timeframe.
- Book Value Per Share (BVPS)
- The book value per share remained negative throughout the period, indicating that the company's liabilities exceeded its assets on a per-share basis. The BVPS showed a slight improvement from -$8.07 in 2020 to -$5.78 in 2022, suggesting some strengthening of book value. However, this trend reversed from 2023 onward, with the BVPS declining to -$7.23 and further to -$7.56 in 2024. This downward movement in the latter years may point to an increase in liabilities or reduction in assets relative to shares outstanding.
- Price to Book Value Ratio (P/BV)
- The P/BV ratio is not provided directly, but given the negative BVPS across all years, it would be mathematically undefined or not meaningful to calculate traditionally. This situation indicates a financial structure where traditional valuation metrics based on book value are less applicable, and investors might rely more on other financial indicators or future earning potential.