Philip Morris International Inc PEG Ratio
Data as of August 04, 2026
PEG Ratio
2.16
PE Ratio (TTM)
27.35
EPS (TTM)
$6.98
Sector
Tobacco
How It's Calculated
2.16 = 27.35 ÷ Growth Rate
What This Means
Philip Morris International Inc's PEG ratio of 2.16 is above 2, suggesting the stock may be overvalued relative to its growth rate. Investors are paying a premium for each unit of earnings growth.
About Philip Morris International Inc
Philip Morris International Inc (PM) operates in the Tobacco sector, specifically in Tobacco. With a market capitalization of about $297.41B, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $187.41, within a 52-week range of $142.11 to $207.76 (-9.8% from the high, +31.9% from the low). Beta of 0.41 indicates relatively lower volatility versus the market.
Trailing profit margin is about 25.6%, signaling a strong profit margin relative to many peers.
Understanding This Metric
The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For Philip Morris International Inc, a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.
Sector Comparison
Among Tobacco names on our S&P 100 coverage, Philip Morris International Inc's PEG ratio of 2.16 can be compared with peers such as MO (4.10). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Tobacco stocks.
Key Takeaways
- PM is grouped in the Tobacco sector for peer comparisons.
- Recent beta of 0.41 suggests lower-than-market price sensitivity.
- Trailing profit margin of 25.6% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for PM.
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Frequently Asked Questions
What is PM's PEG ratio?
PEG adjusts PE for expected earnings growth: PEG ≈ PE ÷ earnings growth rate. Philip Morris International Inc's PEG of 2.16 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG above 1.5 (2.16) may mean the market prices in high growth — or that growth estimates lag reality.
What are limitations of PEG for PM?
PEG depends on a single growth estimate, ignores balance sheet risk, and can mislead when earnings are volatile. Use it with PE, margins, and Tobacco peers — not as a standalone verdict.
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