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Philip Morris International Inc. (PM) Stock: How Does it Score on Valuation Metrics?

Monday, June 14, 2021 01:01 PM | InvestorsObserver Analysts

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Philip Morris International Inc. (PM) Stock: How Does it Score on Valuation Metrics?

Philip Morris International Inc. (PM) receives a strong valuation ranking of 62 from InvestorsObserver's data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. PM has a better value than 62% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 62
PM gets a 62 Valuation Rank today. Find out what this means to you and get the rest of the rankings on PM!

Metrics Analysis

PM has a trailing twelve month Price to Earnings (PE) ratio of 17.8. The historical average of roughly 15 shows a average value for PM stock as investors are paying fair share prices relative to the company's earnings. PM's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 5.54 justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.

PM has a 12 month forward PE to Growth (PEG) ratio of 1.83. Markets are undervaluing PM in relation to its projected growth as its PEG ratio is currently below the fair market value of 1. 5.53999996's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

PM' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. PM's PE and PEG are worse than the market average leading to a below average valuation score.

Click Here to get the full Stock Score Report on Philip Morris International Inc. (PM) Stock.

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