Discounted Cash Flow (DCF) Analysis Levered

Philip Morris International Inc. (PM)

$89.83

-0.13 (-0.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 157.61 | 89.83 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 29,80528,69431,40531,76235,17436,721.6238,337.3340,024.1341,785.1543,623.65
Revenue (%)
Operating Cash Flow 10,0909,81211,96710,8039,20412,216.0712,753.5613,314.7113,900.5414,512.15
Operating Cash Flow (%)
Capital Expenditure -852-602-748-1,077-1,321-1,063.81-1,110.62-1,159.49-1,210.50-1,263.76
Capital Expenditure (%)
Free Cash Flow 9,2389,21011,2199,7267,88311,152.2611,642.9412,155.2212,690.0413,248.38

Weighted Average Cost Of Capital

Share price $ 89.83
Beta 0.654
Diluted Shares Outstanding 1,553
Cost of Debt
Tax Rate 25.23
After-tax Cost of Debt 3.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.246
Total Debt 47,909
Total Equity 139,505.99
Total Capital 187,414.99
Debt Weighting 25.56
Equity Weighting 74.44
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 29,80528,69431,40531,76235,17436,721.6238,337.3340,024.1341,785.1543,623.65
Operating Cash Flow 10,0909,81211,96710,8039,20412,216.0712,753.5613,314.7113,900.5414,512.15
Capital Expenditure -852-602-748-1,077-1,321-1,063.81-1,110.62-1,159.49-1,210.50-1,263.76
Free Cash Flow 9,2389,21011,2199,7267,88311,152.2611,642.9412,155.2212,690.0413,248.38
WACC
PV LFCF 9,313.489,156.479,002.128,850.368,701.17
SUM PV LFCF 50,770.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.19
Free cash flow (t + 1) 13,513.35
Terminal Value 322,514.37
Present Value of Terminal Value 238,853.15

Intrinsic Value

Enterprise Value 289,623.18
Net Debt 44,849
Equity Value 244,774.18
Shares Outstanding 1,553
Equity Value Per Share 157.61