Discounted Cash Flow (DCF) Analysis Levered

Philip Morris International Inc. (PM)

$86.97

-0.03 (-0.03%)
All numbers are in Millions, Currency in USD
Stock DCF: 145.42 | 86.97 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 28,74829,62529,80528,69431,40532,141.3432,894.9533,666.2234,455.5835,263.45
Revenue (%)
Operating Cash Flow 8,9129,47810,0909,81211,96710,873.2711,128.2111,389.1311,656.1711,929.47
Operating Cash Flow (%)
Capital Expenditure -1,548-1,436-852-602-748-1,129.47-1,155.95-1,183.05-1,210.79-1,239.18
Capital Expenditure (%)
Free Cash Flow 7,3648,0429,2389,21011,2199,743.809,972.2610,206.0810,445.3710,690.28

Weighted Average Cost Of Capital

Share price $ 86.97
Beta 0.637
Diluted Shares Outstanding 1,557
Cost of Debt
Tax Rate 25.53
After-tax Cost of Debt 1.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.767
Total Debt 27,806
Total Equity 135,412.29
Total Capital 163,218.29
Debt Weighting 17.04
Equity Weighting 82.96
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 28,74829,62529,80528,69431,40532,141.3432,894.9533,666.2234,455.5835,263.45
Operating Cash Flow 8,9129,47810,0909,81211,96710,873.2711,128.2111,389.1311,656.1711,929.47
Capital Expenditure -1,548-1,436-852-602-748-1,129.47-1,155.95-1,183.05-1,210.79-1,239.18
Free Cash Flow 7,3648,0429,2389,21011,2199,743.809,972.2610,206.0810,445.3710,690.28
WACC
PV LFCF 9,196.608,883.668,581.368,289.348,007.27
SUM PV LFCF 42,958.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.95
Free cash flow (t + 1) 10,904.09
Terminal Value 276,052.89
Present Value of Terminal Value 206,769.99

Intrinsic Value

Enterprise Value 249,728.22
Net Debt 23,310
Equity Value 226,418.22
Shares Outstanding 1,557
Equity Value Per Share 145.42